1. In which of the following situations will the open interest on a futures contract decrease (assuming no other changes)?
   1. A trader buys to open a position while another sells to close
   2. A trader sells to open a position while another buys to close
   3. A trader sells to open a position while another buys to open
   4. A trader buys to close a position while another sells to close

2. Which of the following is false?
   1. Futures are traded on exchanges while forwards are traded over the counter.
   2. Futures contracts can be customized by the traders.
   3. Futures are marked to market based on a closing price established by the exchange/clearinghouse.
   4. Futures trading requires posting margin, while margin may or may not be required for trading a forward position.
   5. Most Futures contracts are closed out before settlement occurs.

3. Oil futures are trading at $60 per barrel, the contract unit is 1,000 barrels, the initial margin is $2,900 and the maintenance margin it $2,750. What is the notional value of one oil contract?
   1. $60
   2. $2,750
   3. $2,900
   4. $60,000
   5. $290,000

Please provide an explanation to the answers