How are exchanged-traded options created?

[KingWithoutACrown]

My conception of how options are created for sale in the standardized exchanges is a little fuzzy. When a private company decides to go public and finance itself with stocks and bonds, they sell them on the exchange (at least with the aid of an investment bank). Who decides how many options are available for trade, and further, what companies should have options traded under their stock?

[Colymbosathon ecplecticos]

The option exchange decides which options will be available to trade.

Once the contracts are listed, market makers offer to buy or sell them. Individuals can buy-to-open or sell-to-open. Later they will sell-to-close or buy-to-close.