An Investor Bought a March S&P 500 Index Futures Contract

question 39

Multiple Choice

An investor bought a March S&P 500 Index futures contract in December for $1,490.05. After six months the contract value went up to $1,539.95. The contract has a multiplier of 250. What is the dollar profit?

• A)$1,996
• B)$19,960
• C)$12,475
• D)$1,247.50
• E)$199.60

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Definitions:

Efferent Nervous System

Part of the nervous system responsible for carrying signals away from the central nervous system towards muscles to cause movement.

Sympathetic Nervous System

A branch of the autonomic nervous system responsible for the body's 'fight or flight' response, preparing the body for action in stressful situations.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for rest and digestion, acting to calm the body after periods of stress or danger.

Efferent Fibres

Nerve fibers that carry impulses away from the central nervous system to effectors such as muscles or glands.