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

question 65

Multiple Choice

On April 1, you bought one S&P 500 Index futures contract at a futures price of 1,550. If, on June 15, the futures price was 1,612, what would be your profit (loss) if you closed your position (without considering transactions costs) ?

• A) $1,550 loss
• B) $15,550 loss
• C) $15,550 profit
• D) $1,550 profit

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Definitions:

Secured Transaction

A loan or credit transaction in which the borrower agrees to give the lender a security interest in certain property (collateral) as a guarantee for repayment.

Personal Property

Personal property refers to assets or belongings that are movable and not permanently fixed to one location, such as furniture, vehicles, and electronics.

Debt

An obligation owed by one party (the debtor) to a second party (the creditor); often referring to borrowed money that must be repaid.

Chapter 11

A part of the United States Bankruptcy Code that permits reorganization under the bankruptcy laws of the United States for corporations and partnerships.