One Futures Contract Is Traded Where Both the Long and Short

question 4

Multiple Choice

One futures contract is traded where both the long and short parties are closing out existing positions.What is the resultant change in the open interest?

• A) No change
• B) Decrease by one
• C) Decrease by two
• D) Increase by one

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Definitions:

CHIP

The Children's Health Insurance Program, a United States federal program providing health coverage to children from families with incomes too high to qualify for Medicaid but too low to afford private coverage.

Injuries

Physical harm or damage to the body caused by accidents, falls, hits, weapons, or other external forces.

Executive Functions

Cognitive processes that regulate, control, and manage other cognitive abilities, including planning, working memory, attention, problem solving, and impulse control.

Swallowing

The process of making food or liquid go from the mouth through the esophagus to the stomach.