An Investor Purchased 100 SPI200 Futures Contracts When the Price

question 1

Short Answer

An investor purchased 100 SPI200 futures contracts when the price was 6450.Twelve months later the investor reversed out when the price was 5960.The investor made a loss of $_____________.
(Enter numbers only,no spaces or thousands separators. )

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Definitions:

Bid Price

The price at which a buyer is willing to purchase a security, currency, or commodity.

Discount Rate

It’s the interest rate applied for determining the current value of cash flows expected in the future through discounted cash flow analysis.

Depreciation Tax Shield

A reduction in taxable income that results from taking the depreciation expense as a tax deduction, thus reducing the firm's tax liability.

Corporate Tax Rate

The corporate tax rate is the percentage of a corporation's taxable income that it must pay to the government, which varies by country and sometimes within regions of countries.