Series 7 practice questioneasyOptions — Options Account Requirements
Before a customer can begin trading options, the registered representative must ensure which document is delivered?
- AThe firm's annual report
- BA power of attorney
- CA margin agreement only
- DThe Options Clearing Corporation (OCC) Disclosure Document✓ Correct answer
Explanation
Why D — The Options Clearing Corporation (OCC) Disclosure Document
The OCC Options Disclosure Document (ODD), also known as 'Characteristics and Risks of Standardized Options,' must be delivered to the customer at or before the time the account is approved for options trading. This is required by FINRA and exchange rules.
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