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Chapter 100 Offshore Company
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Over-the-counter (otc) options, in a broad sense, refer to options trading outside the exchange. Compared with on-market options, the underlying amount is larger, the number of transactions is larger, and it is not subject to the supervision of regulatory authorities, so the trading is very active.
But there is a problem with OTC options, which is the credit problem. Because of the lack of mandatory delivery, both parties to the transaction are likely to default when the del ...
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