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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: ild who wrote (50787)1/22/2006 4:39:15 PM
From: GraceZ  Read Replies (1) | Respond to of 110194
 
Here's a diagram explaining how the end options holder can lose even if the clearing house remains solvent:

numa.com



To: ild who wrote (50787)1/22/2006 8:13:45 PM
From: kris b  Read Replies (1) | Respond to of 110194
 
Options are guaranteed by optionsclearing.com

So what happens if this guys get overwhelmed by the market and go broke. Who guarantees their obligations?