Chapter 01 · Section 1.1

Credit Risk

                    EXCHANGE-TRADED OPTIONS 

Contract Terms             standard
Deliver                    less than 10%
Trading                    centralized
Credit Risk                ...........
Liquidity                  ...........

An exchange-traded options contract is guaranteed:

• a) by the counterpart, through a bank guarantee.
  No. There is no direct counterpart in exchange-traded options. If you consider the exchange itself to be the counterpart, it does not offer a bank guarantee.
  b) by no one. The purchaser assumes all credit risks.
  c) by the exchange clearing house.

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