SIE practice questionhardAccount Types - Options Account
Before a customer first trades options, the firm must:
- AObtain a signed options agreement after account approval✓ Correct answer
- BObtain a notarized statement of net worth
- CAssign a broker to the client
- DRequire immediate exercise of an option
Explanation
Why A — Obtain a signed options agreement after account approval
A signed agreement is required after approval. Net worth need not be notarized, broker assignment is not mandated, and exercise before trading is unnecessary.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Options questions
- Writing a covered call involves:
- An investor writes (sells) a put option, and the stock falls below the strike price. The investor must:
- An investor holds a call option with a strike price of $50 when the underlying stock is trading at $60. What is the…
- What right does the holder of a put option have?
- A call option gives the holder the right to:
- An investor buys a put option and simultaneously sells a call option on the same stock and strike price. What type of…
- An investor buys a put option on XYZ stock. The investor is:
- For an at-the-money call option, what is the intrinsic value and time value, assuming the premium is $3?