You Are Looking at the Open Interest on a Futures

question 80

Multiple Choice

You are looking at the open interest on a futures contract and notice that there are 500 contracts open.If none of the holders of these contracts are willing to take delivery then what is the minimum number of contracts that must be bought or sold by the expiration date of the contract?

• A) 0 contracts
• B) 250 contracts
• C) 500 contracts
• D) 1,000 contracts

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Definitions:

Accounting Period

A specific duration of time used for financial reporting, usually quarterly or annually.

Supplies Expense

Supplies expense is the cost of consumable items used during the operating cycle of a business, such as office supplies, which are expensed as they are consumed.

Adjusting Journal Entry

Adjustments made in the financial books at the period's end to accurately distribute profits and costs to the period they belong.

Net Income

The amount of money that remains after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.