During options trading, credit differentials are unimportant because of the
A) Securities and Exchange Commission.
B) Options Clearing Corporation.
C) Chicago Board Options Exchange.
D) Price reporting system.

Question

Quizplus · Accepted Answer

The Options Clearing Corporation (OCC) plays a crucial role in financial markets as the central counterparty for options trades, ensuring that the obligations of the contracts are met. This includes managing credit risk and ensuring the integrity of the market, making credit differentials important in options trading.

During Options Trading, Credit Differentials Are Unimportant Because of the