Question 1. You just bought two April S&P 500 index futures contracts at a futures price of $400. If the April futures price is $380 one month later, you will have realized a _______ if you close your position.
$380 profit
$380 loss
$10,000 profit
$10,000 loss
Question 2: The current level of the S&P 500 index should be __________ if the futures price for a contract on the S&P 500 that will expire 6 months from now is $808, the dividend yield on the S&P 500 is 2%, and the risk-free interest rate is 4%.
816
808
800
828
Question 3. You just bought 100 shares of Microsoft for $80 per share and sold one Microsoft March 82 call contract for a call premium of $2. The maximum loss that you could realize from this strategy is
$8,400
$7,800
$8,000
$8,200