Assume that it is July 2009. Consider the following information about the CMX gold futures contract:...
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Assume that it is July 2009. Consider the following information about the CMX gold futures contract: Contract size: 100 troy ounce; Initial margin: $1,013 per contract; Maintenance margin: $750 per contract; Minimum tick size: 10 cents/troy ounce ($10/contract) There are four traders, A, B, C, and D, in the market when next year's June contract commences trading. a) Complete the open interest column of the following table. Assume that the open interest is initially zero at the beginning of trading on July 6. Date Buyer July 6 A July 6 C July 6 Settlement Price July 7 D July 7 B July 7 Settlement Price July 8 B July 8 Settlement Price Seller B B A D A Contracts 5 10 10 5 7 Price/Ounce $294.50 $294.00 $294.00 $293.50 $293.80 $293.80 $293.70 $299.50 Open Interest Assume that it is July 2009. Consider the following information about the CMX gold futures contract: Contract size: 100 troy ounce; Initial margin: $1,013 per contract; Maintenance margin: $750 per contract; Minimum tick size: 10 cents/troy ounce ($10/contract) There are four traders, A, B, C, and D, in the market when next year's June contract commences trading. a) Complete the open interest column of the following table. Assume that the open interest is initially zero at the beginning of trading on July 6. Date Buyer July 6 A July 6 C July 6 Settlement Price July 7 D July 7 B July 7 Settlement Price July 8 B July 8 Settlement Price Seller B B A D A Contracts 5 10 10 5 7 Price/Ounce $294.50 $294.00 $294.00 $293.50 $293.80 $293.80 $293.70 $299.50 Open Interest
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Open interest reflects the total number of outstanding derivative contracts such as futures or options that have not been settled For each trade transaction of a new contract the open interest increas... View the full answer
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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