What is negotiated when trading a futures contract

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1. A trader shorts 20 SPI 200 contracts at 7745 but the market rallies to 7757 before she sells an additional 20 contracts. The market subsequently falls to 7734 at which point she buys back 32 contracts. How many contracts does she have? How much is her total profit?

2. Draw the payoff diagram for a long SPI200 futures position at 7732.?

3. On the same chart, draw the payoff diagram for a short SPI 200 futures position at 7755?

4. What is negotiated when trading a futures contract?

5. What is the point value of the SPI200 futures contract?

Reference no: EM133059711

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