Asked by Laney Ankney on Jul 14, 2024
Verified
What is the dollar value of a Mini-Dow futures contract with a listed price of 31,630?
A) $64,145
B) $145,750
C) $158,150
D) $61,450
Mini-Dow Futures
Futures contracts based on the Dow Jones Industrial Average but with a smaller contract size, allowing for more accessible investment.
Listed Price
The official price of a commodity, security, or asset that is publicly quoted on an exchange.
Futures Contract
Financial derivatives that obligate the buyer to purchase, and the seller to sell, a specified asset at a predetermined future date and price.
- Examine how dollar values are used and calculated in futures contracts.
Verified Answer
CU
Claire UrestiJul 14, 2024
Final Answer :
C
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 31,630, the calculation is 31,630 * $5 = $158,150.
Learning Objectives
- Examine how dollar values are used and calculated in futures contracts.