The Net Gain or Loss on a Futures Contract for a Stock

question 35

Multiple Choice

The net gain or loss on a futures contract for a stock index that is not closed out is the difference between the futures price when the initial position was created and the futures price at

• A)the settlement date.
• B)the date at which the futures price reaches its maximum.
• C)the date at which the futures price reaches its minimum.
• D)the date three months beyond the date when the initial position was taken.

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