If You Purchased One S&P 500 Index Futures Contract at a Price

question 20

Multiple Choice

If you purchased one S&P 500 Index futures contract at a price of 1,550 and closed your position when the index futures was 1,547, you incurred:

• A)a loss of $1,500.
• B)a gain of $1,500.
• C)a loss of $750.
• D)a gain of $750.
• E)None of the options

---

Definitions:

Game Theory

A branch of mathematics and economics that studies strategic interactions among rational decision-makers.

Solitaire

A card game played by one person or a metaphor for any activity done alone without the need for other participants.

Oligopoly Behavior

Strategic actions by firms in a market where a few dominant firms interact, leading to solutions and outcomes that depend on the choices of the other market participants.

Prisoner's Dilemma

The Prisoner's Dilemma is a standard example of a game analyzed in game theory that shows why two completely rational individuals might not cooperate, even if it appears that it is in their best interest to do so.