central clearinghouse (ccp) shortcomings

Hi David.....Can you please explain why option d is is not correct answer ? Which is of true of a central counterparty (CCP)? a. By requiring collateral, the CCP effectively eliminates the need for netting and margin b. End users of derivatives that trade on the central clearinghouse must...

Learning objectives: Apply the concept of “too big to fail” to the use of clearinghouses. Evaluate the shortcomings of clearinghouses in reducing risk. Questions: 501.1. Which argument most nearly (best) summarizes Mark Roe's argument in Clearinghouse Overconfidence with respect to a central...