Answer-first summary for fast verification
Answer: Increase of 250 contracts
The cumulative net change in open interest is an **increase of 250 contracts**. ### Step-by-step 1. **Trade 1:** New long vs. new short → open interest **+300** 2. **Trade 2:** New long vs. new short → open interest **+250** - Running total: **550** 3. **Trade 3:** Existing long is offset by a new long → one side closes, one side opens → open interest **no change** 4. **Trade 4:** Existing long is offset by a new long → open interest **no change** - Running total: **550** 5. **Trade 5:** Existing long offsets existing short → both positions are closed → open interest **−150** - Running total: **400** 6. **Trade 6:** Remaining short position is delivered and settled against the corresponding long → open interest **−150** - Final total: **250** ### Conclusion Starting from zero, the cumulative net change in open interest is **+250 contracts**.
Author: Manit Arora
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Question 708.1. The following six trades occur during a futures trading session among participants Albert, Barbara, Chris, Donald, Erin, and Fred:
Which of the following is the cumulative impact of these trades on the open interest; i.e., what is the cumulative net change to the open interest due to these six trades?
A
No change to open interest
B
Increase of 250 contracts
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