Answer-first summary for fast verification
Answer: b) 900
**Open interest** is the number of outstanding futures contracts. When **100 contracts are physically delivered**, those 100 long positions and 100 short positions are closed out, so open interest falls by **100**. **Calculation:** - Initial open interest = 1,000 contracts - Delivered contracts = 100 contracts - Today's open interest = 1,000 - 100 = **900** **Why B is correct:** - Delivery closes positions and reduces open interest by the number of contracts delivered.
Author: Manit Arora
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Q-150.4. Yesterday, there were 1,000 open long positions in futures contracts for a certain consumption commodity, and also 1,000 open short positions. Today, 100 contracts were physically delivered. What is today's open interest?
A
a) 800
B
b) 900
C
c) 1,800
D
d) 1,900
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