The Option Clearing Corporation Created the ______ System to Protect

question 23

Multiple Choice

The Option Clearing Corporation created the ______ system to protect itself from the actions of the writers.

• A) margin
• B) commission
• C) order book
• D) option pricing

---

Definitions:

Cash Inflows

The total amount of money being transferred into a business, typically from operational, financing, and investment activities.

Required Rate

The minimum annual rate of return that an investor expects to achieve on an investment.

After-tax Cash Inflows

The amount of cash generated from any business activity after accounting for taxes.

Scrap Equipment

Old or discarded machinery and equipment that has no further use and is usually sold for its material content.