Which one of the following guarantees that the terms of an exchange-listed option contract are fulfilled when an option is exercised?
A)Securities and Exchange Commission
B)Federal Reserve
C)New York Options Exchange
D)Options Clearing Corporation
E)Securities Investors Protection Corporation

Question

Quizplus · Accepted Answer

The Options Clearing Corporation (OCC) guarantees that the terms of an exchange-listed option contract are fulfilled when an option is exercised. The OCC acts as the counterparty to both the buyer and seller of an options contract, ensuring that the buyer receives the underlying asset or cash equivalent upon exercise, and that the seller delivers the underlying asset or cash equivalent upon assignment.

Which One of the Following Guarantees That the Terms of an Exchange-Listed