You Are Given the Following Information About a Portfolio You

question 15

Multiple Choice

You are given the following information about a portfolio you are to manage.For the long term, you are bullish, but you think the market may fall over the next month. For a 200-point drop in the S&P 500, by how much does the value of the futures position change?

• A)$200,000
• B)$50,000
• C)$250,000
• D)$500,000

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Definitions:

Fatty Acid

Organic compound that consists of an acidic carboxyl group “head” and a long hydrocarbon “tail.” Can be saturated or unsaturated.

Hydrophilic

Describes a substance that dissolves easily in water.

Carboxyl Group

A functional group consisting of a carbon atom double-bonded to an oxygen atom and single-bonded to a hydroxyl group (-COOH), found in organic acids.

Role

The function or position that an entity typically occupies or is expected to occupy within a particular context or system.