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
Correct Answer:
Verified
Q1: Which of the following is not one
Q2: A futures contract provides for:
A) a purchase
Q3: How should a financial instrument be classified
Q5: Which of the following is considered a
Q6: Financial instruments include accounts receivable,accounts payable,futures contracts,equity
Q7: What condition must be present when a
Q8: A 'hedging' financial instrument can:
A) protect against
Q9: A futures exchange clearing house is mainly
Q10: Identify and explain the methods required under
Q11: A futures contract can be arranged:
A) only
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