3. If two different and unquie parties, enter a futures contract and both are op

Question

3. If two different and unquie parties, enter a futures contract and both are opening new positions open interest for that contract would do which of the following?

a. increase by 1 contract.

b. stay the same.

c. decrease by 1 contract.

4. If two different and unique parties, enter a futures contract, one is opening a new position and the other is closing an existing position, open interest for that contract would do which of the following?

a. stay the same.

b. increase by 1 contract.

c. decrease by 1 contract.

Explanation / Answer

3. Option A.

If two different and unquie parties, enter a futures contract and both are opening new positions open interest for that contract, It will result in increase by 1 Contract

4. Option A.

If two different and unique parties, enter a futures contract, one is opening a new position and the other is closing an existing position, open interest for that contract will stay the same

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