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Options
- A
settled in cash
-
taken into Auction Settlement
Correct answer
- C
either 1 or 2 as decided by the Buyer
- D
either 1 or 2 as decided by the Seller
Why this is the answer
If the seller does not serve the Notice of Intent to Deliver on time for the full or part of the open position, the failed quantity is subjected to Auction Settlement. This mechanism ensures that the delivery obligations are enforced by auctioning the undelivered securities, protecting the buyer from non-performance risk.
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