The Value of an S&P 500 Futures Contract Is $500

question 42

Multiple Choice

The value of an S&P 500 futures contract is $500 times the index. Assume the futures price on the S&P 500 index is 1612 at the time of purchase. If the index price is 1619 when the position isclosed out, the gain is

• A) $700.
• B) $7,000.
• C) $3,190.
• D) $3,120.
• E) $3,500.

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Definitions:

Beginning Inventory

The value of goods available for sale or use at the start of an accounting period.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

End-of-Month Inventory

The valuation of all unsold goods, raw materials, and work-in-progress held by a company at the end of the month.

Sales Data

Information related to the quantity sold, revenue generated, and patterns of sales within a specific period.