The size of an index future is $300 * index. If the futures price is 1201.23...

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The size of an index future is $300 * index. If the futures price is 1201.23...

The size of an index future is $300 * index. If the futures price is 1201.23 when you enter into a long futures position and it drops to 1157.10 when you close your position, what is your obligation?

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Answer 1

Answer #1

The obligation is computed as shown below:

= $ 300 x (1201.23 - 1157.10)

= $ 13,239

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Answer 2

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