Suppose that July gold futures just become eligible for trading.Tim buys 20 of those contracts from Ned.Next,he sells 10 contracts to Mary.Finally,Ned buys 10 contracts from Tim.As a result of these three trades:
A) trading volume is 20 contracts and open interest rate is 20 contracts
B) trading volume is 30 contracts and open interest rate is 15 contracts
C) trading volume is 40 contracts and open interest rate is 10 contracts
D) trading volume is 40 contracts and open interest rate is 20 contracts
E) None of these answers are correct.
Correct Answer:
Verified
Q5: The holder of a long forward contract
Q6: •A US company has bought a machine
Q7: Which of the following is NOT a
Q8: Settlement of a futures trade:
A) takes place
Q9: •A US company has bought a machine
Q10: Golddiggers,Inc. ,mines gold and sells refined,pure gold
Q11: The open interest on a futures contract
Q13: You manufacture silver jewelry.To hedge some of
Q14: The main distinction between a forward and
Q15: Which statement is INCORRECT about futures contracts?
A)
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