multiplier in futures (synthetic position)

CFA Level III Fixed Income
#1

can anyone explain a bit what is the multiplier exactly? why we use it together with future contracts prices?

or where can i find an explanation from books?

many thx!!

#2

A typical options contract is for 100 shares of the underlying. Think of the multiplier on a futures contract the same way: how many S&P 500’s you buy or sell with one futures contract.

#3

thx a lot!!

#4

You’re quite welcome.