Chapter 04 · Section 4.1

Guarrantee

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

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