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Chapter 23 Futures and Swaps

# Chapter 23 Futures and Swaps - Chapter 23 Futures and Swaps...

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Chapter 23 Futures and Swaps: Markets and Applications Multiple Choice Questions 1. Which one of the following stock index futures has a multiplier of \$250 times the index value? A) Russell 2000 B) S&P 500 Index C) Nikkei D) DAX-30 E) NASDAQ 100 Answer: B Difficulty: Easy Rationale: The multiplier is used to calculate contract settlements. See Table 23.1. 2. Which one of the following stock index futures has a multiplier of \$10 times the index value? 3. Which one of the following stock index futures has a multiplier of \$500 times the index value? 72

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Chapter 23 Futures and Swaps: Markets and Applications 4. Which one of the following stock index futures has a multiplier of \$100 times the index value? 5. Which one of the following stock index futures has a multiplier of 10 euros times the index? A) CAC 40 B) DJ Euro Stoxx - 50 C) Nikkei D) DAX-30 E) A and B Answer: E Difficulty: Easy Rationale: The multiplier is used to calculate contract settlements. See Table 23.1. 6. You purchased one S&P 500 Index futures contract at a price of 950 and closed your position when the index futures was 947, you incurred: 7. You took a short position in two S&P 500 futures contracts at a price of 910 and closed the position when the index futures was 892, you incurred: 73
Chapter 23 Futures and Swaps: Markets and Applications 8. If a stock index futures contract is overpriced, you would exploit this situation by:

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