The Term Open Interest Refers to the

question 71

Multiple Choice

The term open interest refers to the

• A) total amount of interest paid on an options margin account.
• B) number of option contracts in existence at a point in time.
• C) interest accumulated on a Treasury bond contract.
• D) striking price of an interest rate swap.

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Definitions:

Borrows Money

The act of receiving funds from another party under the agreement to return the principal amount along with interest or other charges.

Shares

A form of financial ownership in a company, giving the holder a portion of the profits and voting rights.

CEO

Chief Executive Officer, the highest-ranking person in a company or organization, responsible for making major corporate decisions.

CFO

The Chief Financial Officer is a high-ranking executive responsible for managing the financial actions of a company, including financial planning and record-keeping.