SIE practice questionhardAccount Types
A client is approved for option trading in a margin account. Which of the following is TRUE?
- AThey can only buy options
- BThey may sell uncovered options, subject to margin requirements✓ Correct answer
- CThey cannot write options at all
- DThey are not subject to Regulation T
Explanation
Why B — They may sell uncovered options, subject to margin requirements
Margin accounts approved for options let clients write uncovered options (with margin). Option buying alone requires less approval. All option accounts are subject to Regulation T.
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