Economics · Financial Markets
Consider the following points related to Open Interest (OI) in Futures and Options trading: 1. It measures the total number of active contracts that have not been settled. 2. Open Interest increases when existing contracts are closed out. 3. It indicates the liquidity and market activity of a security. 4. A decrease in Open Interest suggests money flowing out of the market. 5. Open Interest is irrelevant for options traders. How many of the above statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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Correct answer
Only three
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