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If you buy in April a stock index future contract on the S&P 500 index at the price of 1050
points that matures on June 30 of the same year and on the maturity date the S&P 500 Index is at
1047, you have a ____ of $____.
A) loss; 750
B) loss; 3
C) profit; 750
D) profit; 3
Answer: A
Diff: 2 Type: MC Page Ref: 333 - 334
Skill: Applied
Objective List: 14.1 Distinguish among forwards, futures, options, and swaps
If you sell 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: C
Diff: 2 Type: MC Page Ref: 333 - 334
Skill: Applied
Objective List: 14.1 Distinguish among forwards, futures, options, and swaps
If you sell 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: C
Diff: 2 Type: MC Page Ref: 333 - 334
Skill: Applied
Objective List: 14.1 Distinguish among forwards, futures, options, and swaps
If you sell 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: C
Diff: 2 Type: MC Page Ref: 333 - 334
Skill: Applied
Objective List: 14.1 Distinguish among forwards, futures, options, and swaps