Chapter 04 · Section 4.1

Delivery

How far is the clearing house involved in delivery?

• a) It delivers the underlying asset to the option holders that chose to exercise.
  No. The clearing house does not need to deliver the underlying asset itself although shares may transit through its depository.
  b) If an option holder chooses to exercise, it assigns to the individual option writer of the same series the obligation to deliver or to take delivery.
  c) It assigns the obligation to a clearing member with a short position in the same series the obligation to deliver or to take delivery and oversees the delivery process.