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.

a. What is each traders net position in the contract at the end of the day?

(Calculate long positions minus short positions.)

b. 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.)

c. How would your answers have been different if there were an additional trade:

C long, B short, 5 contracts?

d. How would you expect the measures in part (b) to be different if each contract

had a notional value of $20?