Problem:
An investor would like to invest in stock market, but does not have sufficient funds for the next two months. Thus, the investor buys an S&P 500 futures contract with a September settlement date when the S&P 500 index is at the level of 1,700. By the settlement date, the S&P 500 index falls to 1,575.
Required:
Question: What is the investor's profit or loss on the S&P 500 index futures in dollars?
Note: Explain all calculation and formulas.