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All main topics / Finance & Investment / Derivatives / Derivatives
34
For a futures contract trading in April 2012, the open interest for a June 2012 contract, when compared to the open interest for Sept 2012 contracts, is usually
A.Higher
B.Lower
C.The same
D.Equally likely to be higher or lower
Answer: A

The contracts which are close to maturity tend to have the highest open interest. However, during the  maturity month itself the open interest declines.
New comment
michaelarrington (20.04.2024)
That's correct! Open interest tends to be highest for futures contracts that are closer to maturity because http://drift-hunters.org those contracts are actively traded by investors and speculators.
michaelarrington (20.04.2024)
That's correct! Open interest tends to be highest for futures contracts that are closer to maturity because http://drift-hunters.org those contracts are actively traded by investors and speculators.
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Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015

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