An investor takes a short position in one E-mini SP500 futures contract Each contract delivers $50 times

Fantastic news! We've Found the answer you've been seeking!

Question:

An investor takes a short position in one E-mini SP500 futures contract Each contract delivers $50 times the SP500 index.

Suppose that the SP500 index changes from 3,860.00 to 3,986.50.

How much does the investor gain or loses?

Related Book For answer-question

Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

See More Books

Posted Date: Feb 23, 2023 02:21 AM

See More Questions

A trader takes a short position in a 5 Eurodollar futures contract at the futures price of 98.14. A short time later, the trader closes out the position at a price of 98.27. What is the traders total...
A hedger takes a short position in five T-bill futures contracts at the price of 98 5/32. Each contract is for $100,000 principal. When the position is closed, the price is 95 12/32. What is the gain...
A short position in stock can be protected by holding a call option. Determine the profit equations for this position and identify the breakeven stock price at expiration and maximum and minimum...
Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated...
(Three Differences, Compute Taxable Income, Entry for Taxes) Havaci Company reports pretax financial income of $80,000 for 2010. The following items cause taxable income to be different than pretax...
What is water pollution? Why is wastewater treatment an important part of sustainable water use?
RPM Music Center had the following petty cash transactions in March of the current year: Required 1. Prepare the journal entry to establish the petty cash fund. 2. Prepare a petty cash payments...
Lofty Exploration Company reported these figures for 2012 and 2011: Requirements 1. Compute rate of return on total assets and rate of return on common stockholders equity for 2012. 2. Do these rates...
Stuart Company Balance Sheet As of March 11, 2022 (amounts in thousands) Cash 8,400 Accounts Payable 2,800 Accounts Receivable 4,700 Debt 3,400 Inventory 4,200 Other Liabilities 900 Property Plant &...
Determine the amount of the completed gift, if any, arising from each of the following occurrences. a. A parent sells real estate valued at $1.8 million to an adult child, who pays $1 million in...
What is critical thinking? Why do you believe that it is important that you develop critical thinking skills? Why do they matter - in work and in life? What might you do to improve your critical...
Discuss the role of advanced numerical modeling techniques, such as finite element methods and discrete element methods, in solving complex geotechnical problems. What are the key considerations in...
Alternative objectives of firm decision-making, we expanded the profit motive to consider the goal of sustainability. As part of the motivation for studying the economics of sustainability, we...
Prepare journal entries to record transactions a through h. a. Raw materials purchased on credit, $108,000. b. Direct materials used, $44,000. Indirect materials used, $19,800. c. Direct labor used,...
what would be the ending inventory assuming weighted average cost 90) Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning...
You have started working with an event company (Pick a name of your choice). The company can't sell event tickets on its website, so they use third-party services. The marketing department spends a...
At December 31, 2020, the trading securities for Sunland, Inc. are as follows. Security Cost Fair Value A $18,000 $16,200 B 12,900 13,900 C 23,400 19,000 $54,300 $49,100 (a) Prepare the adjusting...
C- Consider the following scenario:- A supermarket needs to develop the following software to encourage regular customers. For this, the customer needs to supply his/her residence address, telephone...
What is meant by the term agency costs? How did agency costs play a role in the credit crisis?
What is arbitrage? Explain the arbitrage opportunity when the price of a dually listed mining company stock is $50 on the New York Stock Exchange and $52 CAD on the Toronto Stock Exchange. Assume...
A stock index is currently 990, the risk-free rate is 5%, and the dividend yield on the index is 2%. Use a three-step tree to value an 18-month American put option with a strike price of 1,000 when...
Assume your U.S. firm currently exports to Mexico on a monthly basis. The goods are priced in pesos. Once material is received from a source, it is quickly used to produce the product in the United...
Using the information in the previous question, consider a proposal to price the exports to Mexico in dollars and to use the U.S. source for material. Would this proposal eliminate the exchange rate...
Assume that the dollar is expected to strengthen against the euro over the next several years. Explain how this will affect the consolidated earnings of U.S.-based MNCs with subsidiaries in Europe.

An investor takes a short position in one E-mini SP500 futures contract Each contract delivers $50 times

Question:

Expert Answer:

To calculate the gain or loss on a short position in an Emini SP 500 futures contract we need t... View the full answer

Fundamentals of Futures and Options Markets

Students also viewed these finance questions