Calculate the Profit or Loss Associated with a Long Position

question 51

Essay

Calculate the profit or loss associated with a long position in ten SPI futures contracts entered at 4931 and closed out at 4885.Recalculate if the closeout transaction was at 5000.

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Definitions:

Budget Surplus

A situation where a government's revenue exceeds its expenditures during a specific period of time.

Tax Liability

The total amount of tax owed to a taxing authority, such as the government, based on taxable income and tax rate.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.

Social Security

A government program that provides financial assistance to people with inadequate or no income, primarily the elderly, disabled, and families with dependent children.