SIE practice questionhardOptions Account Risk and Suitability
A customer applies for an options account and reports very limited investment experience. The firm should:
- ARefuse to open any account
- BApprove uncovered options writing
- CRestrict the account to basic options strategies, if at all✓ Correct answer
- DIgnore the risk profile if customer insists
Explanation
Why C — Restrict the account to basic options strategies, if at all
Limited experience generally means the customer should only try basic strategies, not risky uncovered options. Refusing the account or ignoring risk is not compliant.
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