The cumulative number of futures contracts that are not offset at any point in time is called:
A)margin.
B)open interest.
C)hedged position.
D)marked to the market position.

Question

Quizplus · Accepted Answer

Open interest is the cumulative number of futures contracts that are not offset at any point in time. Margin refers to the amount of capital that must be deposited to open and maintain a position in a futures contract. A hedged position is one in which an investor enters into a transaction to reduce or eliminate risk, while a marked to the market position refers to the process of adjusting the value of a futures contract to reflect the current market price.

The Cumulative Number of Futures Contracts That Are Not Offset