SIE practice questionmediumAccount Types: Options
Before a customer may trade options, the broker-dealer must:
- AObtain account approval from an options principal✓ Correct answer
- BOpen a margin account
- COpen a custodial account
- DRequire a minimum $25,000 deposit
Explanation
Why A — Obtain account approval from an options principal
Options trading requires principal approval. Margin and custodial accounts are not required for all options accounts, and no $25,000 minimum is imposed for options trading (that applies to day trading in equities).
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