On January 1, You Bought One April S&P 500 Index

question 2

Multiple Choice

On January 1, you bought one April S&P 500 index futures contract at a futures price of 1,420. If, on February 1, the April futures price was 1,430, what would be your profit (loss) if you closed your position (without considering transactions costs) ?

• A) $2,500 loss
• B) $10 loss
• C) $2,500 profit
• D) $10 profit

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Definitions:

Arousal Theory

The theory that optimal performance and psychological arousal are related in a way that differs as a function of the individual and the task.

Yerkes-Dodson Law

A theory suggesting there is an optimal level of arousal for performance, and that too little or too much arousal can negatively affect performance.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, involving changes in heart rate, brain activity, and energy levels.

Performance

The action or process of carrying out or accomplishing an action, task, or function.