Chapter 01 · Section 1.1

Liquidity

                    EXCHANGE-TRADED OPTIONS 

Contract Terms             standard
Delivery                   less than 10%
Trading                    centralized
Credit Risk                clearing house
Liquidity                  ...........

Compared to options that are not traded on an exchange, exchange-traded options uually have:

• a) a high degree of liquidity.
  Yes. Generally, the market can be entered or exited quickly at a price close to the price last traded. Continue
  b) a low degree of liquidity.
  c) almost no liquidity.

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