Chapter 04 · Section 4.1

Open Interest- Definition 1

Which of the following is the best definition of the term open interest?

a) The total number of contracts sold during a day.
b) The total number of contracts bought during a day.
c) The total number of contracts outstanding at the time specified.
• d) The total number of contracts that have been bought up to the time specified.
  No. A lot depends on whether these purchases were made by people who had a short position or not. Some were opening transactions and some were closing transactions.
  e) The total number of contracts that have been sold up to the time specified.

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