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

question 33

Multiple Choice

On April 1, you sold 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

---

Definitions:

Representativeness Heuristic

A cognitive shortcut used in decision making, where the likelihood of an object belonging to a category is judged based on how similar it is to one's conception of that category.

Algorithms

A set of rules or instructions given to perform a task or solve a problem, commonly used in computer programming and mathematics.

Effortful Thinking

The process of thinking that requires conscious effort and attention, as opposed to automatic or instinctive thought processes.

Insight

is the capacity to gain an accurate and deep intuitive understanding of a person or thing, often leading to a breakthrough in problem-solving or comprehension.