If You Sell in April a Stock Index Future Contract

question 68

Multiple Choice

If you sell in April a stock index future contract on the S&P 500 index at the price of 1000 points that matures on June 30 of the same year and on the maturity date the S&P 500 Index is at 900, you have a ________ of $________.

• A)loss; 25000
• B)loss; 100
• C)profit; 25000
• D)profit; 100

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Definitions:

Hydroelectric Power Plants

Facilities that generate electricity by using the flow of water to drive turbines, a renewable and clean source of energy.

Cost-plus-fixed-fee Pricing

A pricing strategy where a fixed fee is added on top of the costs associated with producing and selling a product.

Cost-plus-fixed-fee Pricing

A pricing method where the selling price is determined by adding a fixed fee to the cost of the product or service.

Cost-plus-percentage-of-cost Pricing

A pricing strategy where the selling price is determined by adding a specific percentage markup to the cost of the product or service.