If you observe open interest is increasing and prices are moving higher, which of the following would be the most likely explanation?   A. New short positions are entering the market B. Old short positions are exiting the market C. New long positions are entering the market D. Old long positions are exiting the market

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter25: Portfolio Theory And Asset Pricing Models
Section: Chapter Questions
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If you observe open interest is increasing and prices are moving higher, which of the following would be the most likely explanation?
 
A. New short positions are entering the market
B. Old short positions are exiting the market
C. New long positions are entering the market
D. Old long positions are exiting the market
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