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

Question 4

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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