the economics of money, banking, and financial markets

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14.4 Stock Index Futures

1. 
   

   If you buy in April a stock index future contract on the S&P 500 index at the price of 1000
   points that matures on June 30 of the same year and on the maturity date the S&P 500 Index is at
   900, you have a ____ of $____.
   A) loss; 25000
   B) loss; 100
   C) profit; 25000
   D) profit; 100
   Answer: A
   Diff: 2 Type: MC Page Ref: 333 - 334
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

   
   


2. 
   

   If you buy in April a stock index future contract on the S&P 500 index at the price of 800
   points that matures on June 30 of the same year and on the maturity date the S&P 500 Index is at
   795, you have a ____ of $____.
   A) loss; 1250
   B) loss; 5
   C) profit; 1250
   D) profit; 5
   Answer: A
   Diff: 2 Type: MC Page Ref: 333 - 334
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps

   
   


3. 
   

   If you buy in April a stock index future contract on the S&P 500 index at the price of 1200
   points that matures on June 30 of the same year and on the maturity date the S&P 500 Index is at
   1000 , you have a ____ of $____.
   A) loss; 50000
   B) loss; 200
   C) profit; 50000
   D) profit; 200
   Answer: A
   Diff: 2 Type: MC Page Ref: 333 - 334
   Skill: Applied
   Objective List: 14.1 Distinguish among forwards, futures, options, and swaps