Use the table for the question(s) below.
Consider the following information on options from the CBOE for Merck:
-The open interest for a January 2009 put option that is closest to being at-the-money is ________.
A) 7,174
B) 982
C) 319
D) 8,422

Question

Use the table for the question(s) below.
Consider the following information on options from the CBOE for Merck: 
-The open interest for a January 2009 put option that is closest to being at-the-money is ________.
A) 7,174 
B) 982 
C) 319 
D) 8,422

Quizplus · Accepted Answer

Open interest refers to the total number of outstanding option contracts that have not been settled. The option that is closest to being at-the-money (ATM) typically has the highest open interest because it is where the most trading activity occurs, as traders and investors are most interested in these options. Therefore, the highest number provided, 7,174, is the correct choice.

Use the Table for the Question(s) Below