To select : A correct option for the open interest on a futures contract Introduction : Open interest refers to the total number of outstanding derivative contracts that have not been settled. For each buyer of a futures contract there must be a seller. From the time the buyer or seller opens the contract until the counter-party closes it, that contract is considered 'open'.

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Chapter 17, Problem 1CP

Summary Introduction

To select:

A correct option for the open interest on a futures contract

Introduction:

Open interest refers to the total number of outstanding derivative contracts that have not been settled. For each buyer of a futures contract there must be a seller. From the time the buyer or seller opens the contract until the counter-party closes it, that contract is considered 'open'.

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