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:

Margin

The difference between the selling price of a product or service and its cost, expressed as a percentage of the selling price.

Turnover

A measure of a company's sales or revenues relative to the average value of its assets, inventory, or employees.

Return on Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested.

Operating Assets

Assets used by an organization in its day-to-day operations to generate revenue, excluding investments and inventory.