Chapter 01 · Section 1.1

Delivery

                    EXCHANGE-TRADED OPTIONS 

Contract Terms             standard
Delivery                   ...........
Trading                    ...........
Credit Risk                ...........
Liquidity                  ...........

a) anticipated in 20-30%of all transactions.
• b) anticipated in only 2-3%, sometimes up to 10%of all transactions.
  Yes. Most option positions are closed out by taking an opposite position. The main function of options trading is the risk management, not the physica transaction (stock options are exercised in about 8% of all transactions.) Continue
  c) expected to be made on the expiration date.
  d) expected to be made sometime before the option expires.

(Click here for help)