SIE practice questioneasyOptions — OCC Options Disclosure Document
Before an investor can trade options, the broker-dealer must provide:
- AA personal recommendation from a financial advisor
- BThe OCC Options Disclosure Document (ODD), 'Characteristics and Risks of Standardized Options'✓ Correct answer
- CA guarantee that the investor will not lose money
- DA minimum deposit of $100,000
Explanation
Why B — The OCC Options Disclosure Document (ODD), 'Characteristics and Risks of Standardized Options'
FINRA rules require broker-dealers to provide the OCC Options Disclosure Document (ODD) at or before the time the account is approved for options trading. The ODD describes the characteristics, risks, and mechanics of options. No guarantee against losses is possible (C), no specific minimum deposit is universally required (D), and a personal recommendation is not mandatory (A).
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