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1. Mary Craft is expecting large-capitalization stocks to rally close to the end of the year. She is pessimistic, however, about the performance of small-capitalization
1. Mary Craft is expecting large-capitalization stocks to rally close to the end of the year. She is pessimistic, however, about the performance of small-capitalization stocks. She decides to go long one December futures contract on the Dow Jones December futures contract Industrial Average at a price of 24,520 and short one on the S&P Midcap 400 Index at a price of 1,769.40. The price of a futures contract on the Dow is $10 times the index, and the price of a futures contract on the S&P Midcap 400 is $500 times the index. When Craft closes her position of the year, towar tl Midcap 400 futures prices Dow and er are 24,515 and 1,710.20, respectively. How much is the net gain or loss to Craft
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