The entity that acts as the guarantor of each CBOE-traded contract is the
A) Federal government
B) Securities and exchange commission
C) CBOE
D) Options clearing corporation
E) Federal reserve bank

Question

Quizplus · Accepted Answer

The Options Clearing Corporation (OCC) acts as the guarantor of each CBOE-traded contract. It ensures that the obligations of the parties involved in the contract are fulfilled, and it provides a secure and efficient clearing system for options trading. The Federal government, Securities and exchange commission, CBOE, and Federal reserve bank do not act as guarantors of the contracts traded on the CBOE exchange.

The Entity That Acts as the Guarantor of Each CBOE-Traded