You are looking at the open interest on a futures contract and notice that there are 500 contracts open.If none of the holders of these contracts are willing to take delivery then what is the minimum number of contracts that must be bought or sold by the expiration date of the contract?

Question

Quizplus · Accepted Answer

The minimum number of contracts that must be bought or sold by the expiration date is 500. This is because each open contract must be closed by either taking delivery (which is not an option in this scenario) or by offsetting the contract through an opposite transaction. Therefore, all 500 open contracts must be offset by an equal number of opposite transactions.

You Are Looking at the Open Interest on a Futures