How Is a Futures Contract on the S&P 500 Index

question 103

Multiple Choice

How is a futures contract on the S&P 500 index settled?

• A)cash
• B)shares of stock selected by the contract buyer
• C)shares of stock selected by the contract seller
• D)shares of stock equivalent to those in the index
• E)delivery of a Treasury bill equal in value to the settlement amount

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Definitions:

Depression

A psychological condition displayed by perpetual sadness or a withdrawal from activities, profoundly disturbing day-to-day life.

Adolescents

Individuals in the transition phase from childhood to adulthood, typically ranging from ages 13 to 19.

Females

Referring to the sex of a species that is typically associated with the production of ova or eggs.

Males

Refer to the biological sex that produces sperm and typically has XY chromosomes.