Chapter 01 · Section 1.1
Contract Terms
EXCHANGE-TRADED OPTIONS
Contract Terms ...........
Delivery ...........
Trading ...........
Credit Risk ...........
Liquidity ...........
The terms of an exchange-traded option are:
a) established by the exchange and therefore standardized.
b) negotiated by each party to the agreement.
c) set by the United Nations security council.
d) set out in the 1944 Bretton Woods Agreement.
Contract Terms are size, delivery place, delivery date etc.
Standardization makes sense only when the same contract changes hands several times before delivery.