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
e) a, b and c
The clearing house must have resources specifically set aside to face the possibility of loss due to the default of a clearing member.
(a) and (c) are both correct, but (b) is also correct.