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.
• 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.
  Yes. The positions are kept by the records of brokers, clearing members and clearing house. Continue
  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.

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