If You Sell a Futures Contract on the S&P 500

question 95

Multiple Choice

if you sell a futures contract on the S&P 500 Index at a price of 450 and the index rises to 500, you will ________.

• A)lose $12500
• B)gain $12500
• C)lose $50
• D)gain $50

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Definitions:

Limited Partnership

A business structure where one or more partners have limited liabilities and responsibilities, and there is at least one general partner with unlimited liability.

General Partner

A member of a partnership who has unlimited liability and is actively involved in the management of the partnership.

Limited Partnership

A form of partnership where there is at least one general partner (who assumes unlimited liability for the debt) and one or more limited partners (whose liability is limited to the amount they have invested).

Certificate of Limited Partnership

A legal document filed with a state governmental authority that establishes the existence of a limited partnership.