Who issues and guarantees listed options?

The Options Clearing Corporation (OCC) is the correct answer because it plays a crucial role in the options market by acting as the guarantor for all listed options. When options are traded, the OCC ensures that both the buyer and seller fulfill their contractual obligations, effectively mitigating counterparty risk. This means that if one party defaults, the OCC steps in to guarantee the trade, ensuring that the other party receives what they are owed. Additionally, the OCC is responsible for overseeing the clearing and settlement of options transactions, which includes maintaining records and ensuring regulatory compliance.

While the Securities and Exchange Commission (SEC) regulates the securities industry and enforces securities laws, it does not issue or guarantee options. Similarly, FINRA (Financial Industry Regulatory Authority) focuses on overseeing brokerage firms and protecting investors, rather than handling options directly. Individual brokerage firms may facilitate trading in options, but they do not provide the guarantees or clearing functions that the OCC does. Thus, the unique role of the OCC in providing guarantees and clearing services makes it the correct choice.