In: Finance
Open interest includes:
Multiple Choice
only contracts with a specified delivery date.
only long or short positions but not both.
the sum of long or short positions and clearinghouse positions.
the sum of short, long, and clearinghouse positions.
the sum of short and long positions.
Option B is correct
Open interest includes only long or short positions but not both. Open interest is the total number of contracts that are currently outstanding. For every buy, there is a sell contract and hence we count only either of them not both.
Option A is incorrect because open interest can be calculated for all delivery dates individually
Option C is incorrect because the clearinghouse positions are not included
Option D is incorrect because either long or short positions are included but not both. Clearinghouse positions are not included
Option E is incorrect because either long or short positions are included but not both.