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.
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
  No. (a) and (b) are both correct, but (c) is also correct.
  e) a, b and c

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