If You Took a Short Position in Two S&P 500

question 35

Multiple Choice

If you took a short position in two S&P 500 futures contracts at a price of 3,510 and closed the position when the index futures was 3,492, you incurred

• A) a gain of $9,000.
• B) a loss of $9,000.
• C) a loss of $18,000.
• D) a gain of $18,000.
• E) None of the options are correct.

---

Definitions:

Shortage

A situation in which the demand for a product or service exceeds the available supply, often leading to higher prices or unmet demand in the market.

Surplus

A situation where the quantity supplied of a good exceeds the quantity demanded at the current price, often leading to a decrease in prices.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specific period of time.

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specified period.