On January 1, you sold one April S&P 500 Index futures contract at a futures price of 1,420. If, on February 1, the April futures price was 1,430, what would be your profit (loss) if you closed your position (without considering transactions costs)?

A. $2,500 loss
B. $10 loss
C. $2,500 profit
D. $10 profit


A. $2,500 loss

$1,420 ? $1,430 = ?$10 × 250 = ?$2,500.

Business

You might also like to view...

When recording respondents' answers, interviewers should include all probes and comments

Indicate whether the statement is true or false

Business

______ is the federal agency that conducts research and makes recommendations to prevent worker injury and illness.

A. Affordable Care Administration B. National Institute of Occupational Safety and Health C. Work–Life Balance Institute D. Social Security Administration

Business

According to the Golden Personality Type Profiler, the opposite of a thinking person is one classified as

A) feeling. B) judging. C) perceiving. D) intuiting.

Business

Diversified Corporation's articles of incorporation prohibit a sale of its assets without a vote of the board of directors. Diversified's officers sell some assets to Enterprise Company without notice to the board. The officers also fail to pay Diversified's taxes on time, and some Diversified funds are not accounted for. With respect to Diversified's shareholders, this conduct is most likely A)

not oppressive because it is undertaken by Diversified's officers. B) oppressive because Diversified's directors may be personally liable. C) oppressive because Diversified's shareholders may be personally liable. D) oppressive because it departs from the standards of fair dealing.

Business