Open Interest Includes

question 31

Multiple Choice

Open interest includes

• A) only contracts with a specified delivery date.
• B) the sum of short and long positions.
• C) the sum of short, long, and clearinghouse positions.
• D) the sum of long or short positions and clearinghouse positions.
• E) only long or short positions but not both.

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Definitions:

Exchange Rate Risk

The potential for investors to experience losses due to changes in currency exchange rates.

Interest Rate Swap

A financial derivative agreement between two parties to exchange one stream of interest payments for another, based on a specified principal amount.

Floating-Rate Loan

A loan with an interest rate that adjusts periodically based on a reference interest rate index, reflecting changes in market interest rates.

Savings And Loan Industry

A segment of the financial industry focused on accepting savings deposits and making mortgage and other loans to individuals and businesses.