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 all open contracts must be settled by the expiration date, either through offsetting trades or by taking delivery. If none of the holders are willing to take delivery, they must close their positions by entering into offsetting transactions, which means all 500 contracts must be dealt with.

You Are Looking at the Open Interest on a Futures