If You Purchased One S&P 500 Index Futures Contract at a Price

question 21

Multiple Choice

If you purchased one S&P 500 Index futures contract at a price of 3,550 and closed your position when the index futures was 3,547, you incurred

• A) a loss of $1,500.
• B) a gain of $1,500.
• C) a loss of $750.
• D) a gain of $750.
• E) None of the options are correct.

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Definitions:

Legitimate Power

Power derived from a formal position or role in an organization, allowing one to influence others based on authority.

Expert Power

The ability to influence others based on the possession of knowledge, skills, or expertise that is recognized and valued.

Expectation-States Theory

A social theory that explains how individuals' expectations in a group setting influence the dynamics of status and influence within the group.

Status Characteristics

Attributes or qualities that influence an individual's standing or prestige within a social hierarchy, affecting interactions and perceptions.