QUESTION 39

1. An E-mini S&P 500 futures contract is an electronically traded futures contract one fifth the size of standard S&P futures. E-mini S&P 500 futures contracts are based on the underlying Standard & Poor's 500 stock index. Delivery for these E-mini S&P 500 contracts:

a. Is made by delivering 200 shares of each stock in the index.

b. Requires delivery of one share of each stock in the index.

c. Is made by a cash settlement based on the index value.

d. Is made by delivering an S&P 500 index ETF.

QUESTION 40

1. The process of mark-to-market:

a. Posts gains or losses to each account daily and may result in margin calls.

b. Impacts only short positions.

c. Occurs only on the contracts expiration date.

d. Is not required on all futures contracts.