If You Sell in April a Stock Index Future Contract

question 1

Multiple Choice

If you sell in April a stock index future contract on the S&P 500 index at the price of 800 points that matures on June 30 of the same year and on the maturity date the S&P 500 Index is at 795, you have a ________ of $________.

• A)loss; 1250
• B)loss; 5
• C)profit; 1250
• D)profit; 5

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Definitions:

Fixed Terms

Fixed terms refer to conditions or clauses in a contract or agreement that are set and cannot be changed without the consent of all parties involved.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Contract Terms

Specific provisions or conditions outlined in a contract that define the rights, duties, and obligations of the parties involved.

Parking Space

A designated location for parking a vehicle, often marked in a parking lot or garage.