Asked by Rheagan Fischette on Jul 07, 2024
Verified
What is the dollar value of a Mini-Dow futures contract with a listed price of 27,150?
A) $54,145
B) $135,750
C) $157,500
D) $51,450
Mini-Dow Futures
A futures contract that represents a fraction of the value of standard Dow Jones Industrial Average futures, allowing for investment with a smaller capital outlay.
Listed Price
The price at which a security is listed for trading on a stock exchange.
Futures Contract
A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for commodities or financial instruments.
- Analyze the use and calculation of dollar values in futures contracts.
Verified Answer
NF
Nneaka FlowersJul 10, 2024
Final Answer :
B
Explanation :
The dollar value of a Mini-Dow futures contract is calculated by multiplying the listed price by $5. Therefore, for a listed price of 27,150, the calculation is 27,150 * $5 = $135,750.
Learning Objectives
- Analyze the use and calculation of dollar values in futures contracts.