The Options Clearing Corporation (OCC):
A) always has a net position of zero.
B) acts as a dealer in options, standing ready to buy or sell from its inventory.
C) selects the broker with the largest holdings to honor the exercise of an option.
D) uses first in, first out to select a broker to honor the exercise of an option.

Question

Quizplus · Accepted Answer

The OCC acts as a guarantor and clearinghouse for options contracts, ensuring that the obligations of the contracts are fulfilled. It does not take positions itself, so it always has a net position of zero.