Chapter 04 · Section 4.1

Guarrantee

To be able to guarantee the fulfilment of a options contract, the clearing house:

• a) must be strongly capitalized.
  No. (a) is correct, but this is not the only correct answer.
  b) relies in part on letters of guarantee supplied by clearing members.
  c) relies on a clearing fund, i.e. money specifically set aside for contingencies.
  d) a & b
  e) a, b and c

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