- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 6. Pricing and Valuation of Futures Contracts
- Subject 1. Why do Forward and Futures Prices Differ?
CFA Practice Question
A futures contract was initiated at a price of $18.00. Currently, the futures contract is trading at $22.50. The last settlement price of the futures contract was $21.00. What is the value of the contract to the long party?
B. $3.00
C. $4.50
A. $1.50
B. $3.00
C. $4.50
Correct Answer: A
The value of the futures contract is the difference between the current price minus the last settlement price.
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