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

Know the accounting entries for stock subscriptions and their down payments.

Understand the implications of dividends in arrears on preferred stock.

Grasp the accounting treatments and financial statement impacts of stock splits and stock options (both compensatory and noncompensatory).

Understand the principles of stock appreciation rights (SARs) compensation plans and their measurement and exercise dates.

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Definitions:

Temporal

relates to time or the sequential order of events.

Vomer

A thin, flat bone forming the lower part of the nasal septum, which divides the left and right airways in the nose.

Sphenoid

Wedge-shaped.

Appendicular Skeleton

The portion of the skeleton that includes the bones of the limbs and the supporting bone girdles (pectoral and pelvic) that connect them to the central body, or axial, skeleton.