Under which of the following situations does the open interest increase by one contract?

a new sell order meets a new buy order

an offset buy order meets an offset sell order

an offset sell order meets a new buy order

and offset buy order meets a new sale order

two new sale orders meet one new buy order

Expert Solution

The 1st option is right option.

Explanation:

When a new sell order meets a New Buy order, the Open Interest increases by 1 contract

When an offset buy order meets an offset sell order, the Open Interest decreases by 1 contract

When an offset sell order meets a new buy order, the Open Interest remains unchanged

When an offset buy order meets a new sell order, the Open Interest remains unchanged

When two new sale orders meet one new buy order - information incomplete whether the second buy order is a new or offset buy order, if it is new buy order, open interest will increase by 2 contracts, when it is an offset buy order, open interest will increase by 1 contract

Hence, 1st option is the correct answer.

The 1st option is right option.

Junaid answered 2 years ago

1. If the Fed conducts open-market sales, which of the following quantities increase? a. interest rates,...

1. If the Fed conducts open-market sales, which of the following quantities increase? a. interest rates, prices, and investment spending b. interest rates and prices, but not investment spending c. interest rates and investment, but not prices d. interest rates, but not investment or prices 2. A tax cut shifts aggregate demand a. by more than the amount of the tax cut b. by the same amount as the tax cut c. by less than the tax cut d. None...

I. Does the solubility of the solute increase or decrease in each of the following situations?...

I. Does the solubility of the solute increase or decrease in each of the following situations? 1. Ice is placed in a glass of cola (solute is CO2 gas). 2. Honey is dissolved in hot water instead of cold water. 3. The pressure of O2 over a solution is increased (solute is O2 gas). II. Which of the following statements about the dilution of a solution are true? The volume of solution remains unchanged. The amount of solute decreases. The...

A decrease in lung compliance will result in which of the following situations? a. an increase...

A decrease in lung compliance will result in which of the following situations? a. an increase in the vital capacity of the lung b. a trend toward increased ventilation relative to pulmonary perfusion c. increase the work of breathing d. a greater change in volume for a given change in transmural pressure

In determining the meaning of a contract under the UCC, which of the following will have...

In determining the meaning of a contract under the UCC, which of the following will have first priority? A. Course of Performance B. Course of Dealing C. Usage of Trade D. Express Terms

Which of the following is not one of the five situations in which an auditor may...

Which of the following is not one of the five situations in which an auditor may choose to issue an unqualified audit report with explanatory language? Select one: a. inconsistent application of GAAP b. reference to other auditors c. a justified departure from GAAP d. lack of independence by the auditor

Under which conditions or in which situations are in-depth interviews more appropriate, and under which conditions...

Under which conditions or in which situations are in-depth interviews more appropriate, and under which conditions or in which situations are focus groups more appropriate? Please support your answer with additional sources/references and, if possible, provide a short example.

Explain what is meant by open interest, Why does the open interest usually decline during the...

Explain what is meant by open interest, Why does the open interest usually decline during the month preceding the delivery month? On a particular day. there were 2000 trades in a particular futures contract. This means that there were 2000 buyers (going long) and sellers (going short). Of the 2000 buyers, 1400 were closing out positions and were entering into new positions. Of the 2000 sellers. 1200 were closing out positions and 800 were entering into new positions. What is...

Under what circumstances does goodwill increase?

Which of the following is NOT one of the benefits of Open-Source software?

Which of the following is NOT one of the benefits of Open-Source software?Anyone has a chance to improve the softwareNew versions can be developed fasterNo copyright law to worry about - the programs belong to the entire user communityThe programs tend to be more user-friendly and possess better graphical user interfacesSince the software is usually free, it allows programmers/consultants to focus on service

Which of the following statements about cardiac anatomy is CORRECT: A. Papillary muscles contract to open...

Which of the following statements about cardiac anatomy is CORRECT: A. Papillary muscles contract to open the AV valves. B. Cardiac cells in the SA node are functionally coupled by chemical synapses. C. The heart does not have its own arteries, capillaries, and veins because it obtains vital substances from the blood that is being pumped through it. D. The volume of the left ventricle is equal to the volume of the right ventricle. *Option D is the correct answer,...

Question