For a Futures Contract Trading in April,the Open Interest for a June

question 1

Multiple Choice

For a futures contract trading in April,the open interest for a June contract,when compared to the open interest for Sept contract,is usually

• A) Higher
• B) Lower
• C) The same
• D) Equally likely to be higher or lower

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Definitions:

Bilateral Contract

A bilateral contract is a mutually binding agreement in which each party makes a promise to the other, such as a promise to perform a service in exchange for payment.

Illusory Promise

Describes a statement or agreement that appears to be a promise but is too vague or has terms that allow the promisor to avoid any real obligation.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Student Debt

Loans accumulated through financing higher education, often a significant financial burden for graduates.