If You Buy in April a Stock Index Future Contract

question 67

Multiple Choice

If you buy 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:

Machine 1

A term referring to a specific machine within a series or factory setup, usually designated as the first in a sequence or category.

Dependent Demand

The demand for a product that is directly linked to the demand for another product, such as the demand for parts or raw materials needed to produce a final product.

MRP

Material Requirements Planning, a production planning, scheduling, and inventory control system used to manage manufacturing processes.

Phantom Bills

Virtual or imaginary bills of materials used for planning and process mapping without affecting actual inventory.