Which of the following statements best describes a feature of an option contract that does not go through the Option Clearing Corporation? In an option contract: A

Finance Dec 25, 2020

Which of the following statements best describes a feature of an option contract that does not go through the Option Clearing Corporation? In an option contract:
A.   neither the buyer nor the writer can default
B.   only the writer can default
C.   only the buyer can default
D.   both the buyer and the writer can default

Expert Solution

In an option contract: neither the buyer nor the writer can default

Option A is correct.

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