The clearing corporation has a net position equal to ______.
A) the open interest
B) the open interest times two
C) the open interest divided by two
D) zero

Question

Quizplus · Accepted Answer

The clearing corporation acts as an intermediary between buyers and sellers, and its purpose is to guarantee the performance of each contract. Therefore, its net position is always zero because for every buyer, there is a seller, and vice versa.

The Clearing Corporation Has a Net Position Equal to ______