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) Bank of Canada Federal Reserve
C) Montreal Options Exchange
D) Options Clearing Corporation
E) ICE Derivatives Exchange

Question

Quizplus · Accepted Answer

The Options Clearing Corporation is responsible for ensuring that the terms of an exchange-listed option contract are fulfilled when an option is exercised. It acts as the counterparty to both the buyer and seller of the option, and guarantees the performance of the contract.

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