You enter 20 shortcontracts in the SPI200 futures, when the futures are quoted atF= 5900. Several weeks later, when you close out this position, the SPI200 futures are quoted atF= 5700. What is the profit or loss on your futures trading?

Note that SPI200 futures contracts have a standard multiplier of $A25.

Select one:

$4,000 loss

$100,000 loss

$4,000 profit

$100,000 profit

Impossible to determine without knowing the dividend yield on the market portfolio and the riskfree rate of interest.