Reading 70: Option Markets and Contracts LOSb习题精选 following, 2010, between, border

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LOS b: Differentiate between exchange-traded options and over-the-counter options.

Exchange-traded stock options are all of the following EXCEPT:

A) backed by the options clearinghouse.

B) subject to counterparty risk.

C) typically for 100 shares of stock.

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Exchange-traded options are backed by the clearinghouse and not subject to counterparty risk; over-the-counter options are subject to counterparty risk.

 

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Exchange-traded options are NOT:

A) backed by the Options Clearing Corporation.

B) standardized as to expirations and contract size.

C) issued by dealers.

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Over-the-counter options are issued by dealers.

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Over-the-counter options are:

A) largely unregulated.

B) very liquid.

C) the most important type in terms of volume.

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Over-the-counter options are largely unregulated, not liquid, and represent much less volume than exchange-traded options.