Assume at the start of the day the open interest in a futures contract is 10,000...
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Assume at the start of the day the open interest in a futures contract is 10,000 contracts. Assume during the course of the day, someone who is short decides to buy-to-close 2,000 contracts. On the other side of this transaction, someone who is long 1,000 contacts decides to sell-to-close all their contracts, and then a new person with no existing position in the contract decides to sell-to open 1,000 contracts. If this is the only trading that takes place in the contract that day, how many contracts will be left outstanding? Assume at the start of the day the open interest in a futures contract is 10,000 contracts. Assume during the course of the day, someone who is short decides to buy-to-close 2,000 contracts. On the other side of this transaction, someone who is long 1,000 contacts decides to sell-to-close all their contracts, and then a new person with no existing position in the contract decides to sell-to open 1,000 contracts. If this is the only trading that takes place in the contract that day, how many contracts will be left outstanding?
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Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Posted Date:
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