delete

[Angrymarshmello]

please delete, I'm a dumb@$$

 

[glenn1]

Actually, presuming that the hypothetical futures contract is being traded on the Merc (Chicago Mercantile Exchange), the contract is actually marked-to-market at the close of every trading day. That is, if the contract is in the money by $1,000.00, you're paid a grand in cash. If you're out of the money by $1,000.00, you need to cough up a grand in cash. The example also doesn't mention if it's a capped contract or not, so that makes the question impossible to answer.

 

[Angrymarshmello]

Hey glenn1,

thanks for the help! I kind of found the answer at CME's website:

Each futures contract shall be valued at $250.00 times the Standard and Poor's 500 Stock Price Index. The Standard and Poor's Stock Price Index is a value-weighted composite index of 500 stocks.

I had the wrong index number thingy. BTW, I have no idea what you said, sorry