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.
b) by no one. The purchaser assumes all credit risks.
c) by the exchange clearing house.