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

question 5

Multiple Choice

If you took a short position in three S&P 500 futures contracts at a price of 2900 and closed the position when the index futures was 2885, you incurred

• A) a gain of $11,250.
• B) a loss of $11,250.
• C) a loss of $8,000.
• D) a gain of $8,000.
• E) None of the options are correct.

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Definitions:

John Brown

An American abolitionist leader in the 19th century known for his militant opposition to slavery.

Harpers Ferry

A historic town in West Virginia, known for John Brown's raid in 1859, which was intended to initiate an armed slave revolt.

Abolitionists

Individuals and groups who advocated for the immediate end of slavery and the emancipation of slaves, active especially in the 19th century.

Executive Branch

is one of the three branches of government, tasked with enforcing laws passed by the legislature, headed by the President in the United States or similar leadership positions in other countries.