Question: 1. Why an organized options exchange needs a clearing house? Provide in-depth explanations with at least one example. 2. How can a trader close his

1. Why an organized options exchange needs a clearing house? Provide in-depth explanations with at least one example.

2. How can a trader close his long position in an option contract? Provide in-depth explanations with at least one example.

3. How can a trader close his short position in an option contract? Provide in-depth explanations with at least one example.

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