SIE practice questionmediumOptions Account Documentation
What documentation must a client be provided before their options account can be approved for trading?
- AMargin agreement
- BOptions Disclosure Document (ODD)✓ Correct answer
- CProspectus
- DTrade confirmation
Explanation
Why B — Options Disclosure Document (ODD)
Customers must receive the Options Disclosure Document (ODD) before their options account is approved. The margin agreement relates to margin accounts, not options. A prospectus is for new securities offerings and trade confirmations are for post-trade.
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 Customer Accounts & Suitability questions
- Who can exercise discretionary authority in a brokerage account?
- To open an institutional account for a corporation, the broker-dealer must obtain:
- An investment adviser opening a discretionary account for a client has what primary responsibility?
- Which piece of information is NOT required to open a standard individual brokerage account?
- A registered representative must put the client's interests ahead of their own. This duty is known as:
- An agent receives a limit order from a client to buy 400 shares of LMN stock at $35. While waiting for the limit to be…
- Under Regulation Best Interest (Reg BI), broker-dealers must:
- A registered representative making a trade unsuitable for a client violates which duty?