Question
Can u help me solve this ? Consider the widget exchange. Suppose that each widget contract has a market value of $0 and a notional
Can u help me solve this ? Consider the widget exchange. Suppose that each widget contract has a market value of $0 and a notional value of $100. There are three traders, A, B, and C. Over one day, the following trades occur:
A long, B short, 5 contracts. A long, C short, 15 contract. B long, C short, 10 contracts. C long, A short, 20 contracts.
What is each traders net position in the contract at the end of the day? (Calculate long positions minus short positions.)
What are trading volume, open interest, and the notional values of trading volume and open interest? (Calculate open interest as the sum of the net long positions, from your previous answer.)
Howwouldyouranswershavebeendifferentiftherewereanadditionaltrade: C long, B short, 5 contracts?
How would you expect the measures in part (b) to be different if each contract had a notional value of $20?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started