SIE practice questioneasyOptions Accounts
Before a customer can trade options, a representative must:
- AOpen a custodial account
- BObtain only verbal consent from the customer
- CObtain approval from a registered options principal✓ Correct answer
- DWaive all account documentation
Explanation
Why C — Obtain approval from a registered options principal
Regulators require options accounts to be approved by a registered options principal before trading. Verbal consent and account documentation waivers are not sufficient, and a custodial account is only required for minors.
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