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...
d) Customer A and B have a contractual relationship with the exchange.
No. The exchange basically only recognises exchange members. In some cases, the exchange also assumes the function of clearing house. This is not the case for most American exchanges.
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.
c) Customer A and B have a contractual relationship with the clearing house directly.
(Click here for help)