SIE practice questionmediumOptions expiration
Upon expiration, which options are automatically exercised by OCC?
- AOptions in-the-money by $0.01 or more✓ Correct answer
- BAll options regardless of the money status
- COnly options in-the-money by at least $1
- DOnly those requested by the client
Explanation
Why A — Options in-the-money by $0.01 or more
OCC automatically exercises contracts that are at least $0.01 in-the-money, unless instructions are given not to exercise.
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