SIE practice questionmediumAccount Types – Option Trading Eligibility
A client wants to write uncovered call options. Which is required?
- AApproval for an options margin account✓ Correct answer
- BA trust account
- CA custodial account
- DA joint account
Explanation
Why A — Approval for an options margin account
Writing uncovered options is a high-risk activity and only allowed in approved margin accounts with special options approval. Trust, custodial, and joint accounts do not automatically qualify.
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