Q # 7 does not make any sense. First of all, where did they get USD 862,500 from? 147 million CAD is 113,689,095 USD at 1.2930 rate right? Second, the S&P futures contract has a price of 2,464.29. Here I assumed it is for S&P 500 not the mini. So multiplied by 250. So confused with what they have presented and are asking ??

$862500 is 15% of the portfolio of $5.750M, His bonus is 5.75M and the equity portion of the portfolio is 15%.

The question’s answers all are in S&P eminis, so you should be calculating the # of contracts based on emini which has a multiplier of 50… Why would you calculate it on regular S&P future when thats not in the answer choices? Both emini and regular S&P are based on the same S&P price, but they have different multipliers.
Thanks.
I understand point 1 but for 2nd, how would you guess its’ not regular but mini?
Beacuse the choiceA, B and C all say emini.
A: XXX emini contracts B: XXX emini contracts C: XXX emini contracts.
In preparation for receipt of the performance bonus, Tong should immediately:
 buy two US Emini equity futures contracts.
 sell nine US Emini equity futures contracts.
 buy seven US Emini equity futures contracts.
if you choose to use regular S&P futures, you have no answer that matches A, B or C.
Thanks for the explanation. Thanks