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The index multiplier for the dollar denominated CME Nikkei 225 index futures contract is $5. Suppose...

The index multiplier for the dollar denominated CME Nikkei 225 index futures contract is $5. Suppose that the current futures index price for the June Nikkei 225 contract is 14272, and the current spot market value of the Nikkei 225 index is 14432. What is the market value of the underlying asset for one contract, denominated in dollars?

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Answer #1

The market value of the underlying asset for one contract = Current spot market value * index multiplier

The market value of the underlying asset for one contract = 14432 * 5 = $72,160

The underlying asset here is the Nikkei 225 Index.

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