All Exchange-Traded Options Are Settled Through a Clearing House but Over-The-Counter

question 24

Multiple Choice

All exchange-traded options are settled through a clearing house but over-the-counter options are not and are thus subject to greater ________ risk.

• A) exchange rate
• B) country
• C) counterparty
• D) none of the above

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Definitions:

Lens

A transparent structure in the eye that focuses light on the retina to create clear images.

Retina

A thin layer of tissue at the back of the eye that contains cells sensitive to light, which trigger nerve impulses that pass via the optic nerve to the brain.

Upside-Down Image

Refers to the way images are projected onto the retina in the eye, which the brain then interprets and flips to the correct orientation.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light images into nerve signals sent to the brain.