Index Date Contract For Free

How Are S&P 500 Futures Calculated? The contract unit for the E-mini S&P 500 is $50 times the value of the S&P 500 Index. For example, if the underlying S&P 500 Index were trading at the 4,000-point level, the E-mini's contract would be $200,000.

Futures contracts on the value of a particular stock market index are known as stock futures. Futures Price = Stock Price × (1 + Risk-Free Interest Rate ? Dividend Yield).

Futures contracts on the value of a particular stock market index are known as stock futures. Futures Price = Stock Price × (1 + Risk-Free Interest Rate ? Dividend Yield).

The index futures price must equal the underlying index value only at expiration. At any other time, the futures contract has a fair value relative to the index known as the basis. The basis reflects the expected dividends forgone and differences in financing cost between the index futures and its stock components.

An indexed contract is very common in commodity markets, especially gas markets. It is also referred to as floating or variable price contract. It means that the price paid for the commodity depends on the evolution of market prices, spot or forward.

Stock index futures, also referred to as equity index futures or just index futures, are futures contracts based on a stock index. Futures contracts are an agreement to buy or sell the value of the underlying asset at a specific price on a specific date. In this case, the underlying asset is tied to a stock index.

Base date of the index The date where the index has its base value and against which the performance of the index is measured. Base value The initial value (index level) that the index has.

Examples of Index Futures Scenario 1: The S&P 500 Index falls to 1,900 points. The futures contract is now worth $95,000 ($50 x 1,900). The investor loses $5,000. Scenario 2: The S&P 500 Index rises to 2,100 points. The futures contract is now worth $105,000 ($50 x 2,100). The investor earns a $5,000 profit.