Chapter 04 · Section 4.1

Call Open Interest/Volume

Suppose that on the first day there were only three trades:

Day 1 
Al  buys  5 Sep 35 calls.
Sam sells 2 Sep 35 calls.
Tim sells 3 Sep 35 calls.

CALL                    PUT  
Open interest :         Open interest :    
Trading volume:         Trading volume: 

a) 10 & 5
• b) 50
  No. Your figure for open interest is not correct. Trading volume is the number of option contracts traded during the day.
  c) 0
  d) 35
  e) 10
  f) 5 & 5

(Click here for help)