A Trader Sells 2 Futures Contracts (A Total Value of $50)when

question 15

Multiple Choice

A trader sells 2 futures contracts (a total value of $50) when the price of the contracts (based on the SPI 200 share price index) is 3030.When these contracts expire,the index itself is at 3015 points and the price of the SPI 200 contract units is 2995.The trader has:

• A) made a gain of $1750
• B) made a loss of $1750
• C) made a loss of $875
• D) made a gain of $875

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Definitions:

Office Equipment Depreciation

Office equipment depreciation is an accounting method to allocate the cost of office assets over their useful lives for reporting their wear and tear, usage, or obsolescence.

Factory Overhead

The total of all costs that are incurred to manufacture products, excluding the direct costs of labor and materials.

Sales Supplies Used

Pertains to the total cost of sales or promotional materials consumed or utilized during a particular period.

Selling and Administrative Expense

Selling and administrative expense includes costs related to the selling of products and the management of the business, excluding production costs.