How Is a Futures Contract on the S&P 500 Settled

question 71

Multiple Choice

How is a futures contract on the S&P 500 settled?

• A) cash
• B) shares of stock selected by the contract buyer
• C) shares of stock selected by the contract seller
• D) shares of stock equivalent to those in the index
• E) delivery of a Treasury bill equal in value to the settlement amount

---

Definitions:

Inference Forms

Standard logical structures that outline the relationship between premises and conclusion, guiding the derivation of the latter from the former.

MP

A shorthand for "Member of Parliament," a representative elected to the legislative body of a country. Alternatively, in logic, it could stand for "Modus Ponens," a form of argument where from premises "If P, then Q" and "P," one concludes "Q."

Inference Forms

Structures of reasoning that establish a conclusion based on one or more premises.

MP

Stands for Modus Ponens, a crucial concept in formal logic entailing that from premises of the form "If P, then Q" and "P is true," one can conclusively deduce "Q must be true."