Chapter 04 · Section 4.1

Nestlé

Let us look at the same question from another angle: a transaction has been completed. Customer A bought 1 Nestlé Jan 10,000 call option, Customer B has written that option. As a result, customer A is long 1 Nestlé Jan 10.000 call, customer B is short 1 Nestlé Jan 10.000 call and...

• a) Customer A has a contractual relationship with customer B.
  No. As soon as the trade has been recorded, the relationship between the two original parties ceases.
  b) Customers A and B have a contractual relationship with their respective brokers, who in turn have one with a clearing member or the clearing house directly.
  c) Customer A and B have a contractual relationship with the clearing house directly.
  d) Customer A and B have a contractual relationship with the exchange.

(Click here for help)