Explanation:
The correct answer is A because the over-the-counter (OTC) derivatives market primarily involves contracts between end users and dealers, who act as financial intermediaries (e.g., commercial banks or investment banks). Option B is incorrect because end users typically do not trade directly with each other. Option C is incorrect because central counterparties (CCPs) are responsible for clearing and settlement, not direct trading of derivatives.
In the over-the-counter derivatives market, most transactions occur between end users and:
A
dealers, such as commercial banks or investment banks.
B
other end users.
C
a central counterparty (CCP), which provides clearing and settlement functions.
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