If You Buy in April a Stock Index Future Contract

question 14

Multiple Choice

If you buy in April a stock index future contract on the S&P 500 index at the price of 1200 points that matures on June 30 of the same year and on the maturity date the S&P 500 Index is at 1000, you have a ________ of $________.

• A)loss; 50000
• B)loss; 200
• C)profit; 50000
• D)profit; 200

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Definitions:

Self-Censorship

Self-censorship occurs when individuals withhold their opinions, expressions, or information out of fear of social or official reprisal, judgment, or rejection.

Direct Pressure

A form of social influence where explicit demands or requests are made to coerce someone into complying.

Sucker Effect

A phenomenon where individuals are less likely to contribute to a collective effort because they perceive that others are not doing their fair share, leading to a decrease in overall group contribution.

Withhold Effort

The act of deliberately putting in less effort or refraining from making a full effort, often as a form of protest or dissatisfaction.