If you observe open interest is increasing and prices are moving lower, which of the following would be the most likely explanation? A. New short positions are entering the market B. Old short positions are exiting the market C. New long positions are entering the market D. Old long positions are exiting the market
If you observe open interest is increasing and prices are moving lower, which of the following would be the most likely explanation? A. New short positions are entering the market B. Old short positions are exiting the market C. New long positions are entering the market D. Old long positions are exiting the market
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If you observe open interest is increasing and prices are moving lower, which of the following would be the most likely explanation?
A. New short positions are entering the market
B. Old short positions are exiting the market
C. New long positions are entering the market
D. Old long positions are exiting the market
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