SIE practice questionmediumOptions Account Risk Disclosure
What must a firm provide to a customer before options trading is permitted?
- AOptions disclosure document (ODD)✓ Correct answer
- BLife insurance policy
- CAnnual report
- DMortgage application
Explanation
Why A — Options disclosure document (ODD)
An ODD is required to educate customers on options risks. Life insurance, annual reports, and mortgage applications are not applicable to options account approvals.
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