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What is the open interest at the end of the day

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Question - Suppose a futures contract on a stock index begins trading today. At 10am, trader A goes long 10 contracts with trader B, who shorts 10 contracts, at a price of $200. At 2pm, trader A shorts 5 contracts with trader C, who goes long 5, at a price of $215. The settlement price of the day, set by the clearing house, is $210.

a) What is the volume of trades for the day?

b) What is the open interest at the end of the day?

c) What are the mark-to-market gains (losses) for each trader after settlement? Assume a multiplier (i.e., unit size) of 100. Note that the mark-to-market gains should sum to zero across traders (it's a zero- sum game).

Reference no: EM133102427

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