If you sold an S&P 500 Index futures contract at a price of 2950 and closed your position when the index futures was 2947, you incurred
A) a loss of $1,500.
B) a gain of $1,500.
C) a loss of $750.
D) a gain of $750.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

The correct answer is a gain of $750. This is because the S&P 500 Index futures contract is valued at $250 times the index. Selling at 2950 and buying back at 2947 means the index moved 3 points in your favor. Therefore, 3 points * $250 = $750 gain.

If You Sold an S&P 500 Index Futures Contract at a Price