Reading 73: Option Markets and Contracts - LOS a, (Part 2 style, black, class

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1.Over-the-counter options are:

A)   the most important type in terms of volume.

B)   very liquid.

C)   largely unregulated.

D)   issued by the Options Clearing Corporation.

2.Exchange-traded options are NOT:

A)   standardized as to expirations and contract size.

B)   issued by dealers.

C)   backed by the Options Clearing Corporation.

D)   liquid.

3.Exchange-traded stock options are all of the following EXCEPT:

A)   backed by the options clearinghouse.

B)   typically for 100 shares of stock.

C)   subject to counterparty risk.

D)   standardized in regard to their expiration dates.

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答案和详解如下：

1.Over-the-counter options are:

A)   the most important type in terms of volume.

B)   very liquid.

C)   largely unregulated.

D)   issued by the Options Clearing Corporation.

The correct answer was C)

Over-the-counter options are largely unregulated, not liquid, issued by dealers, and represent much less volume than exchange-traded options.

2.Exchange-traded options are NOT:

A)   standardized as to expirations and contract size.

B)   issued by dealers.

C)   backed by the Options Clearing Corporation.

D)   liquid.

The correct answer was B)

Over-the-counter options are issued by dealers.

3.Exchange-traded stock options are all of the following EXCEPT:

A)   backed by the options clearinghouse.

B)   typically for 100 shares of stock.

C)   subject to counterparty risk.

D)   standardized in regard to their expiration dates.

The correct answer was C)

Exchange-traded options are backed by the clearinghouse and not subject to counterparty risk; over-the-counter options are subject to counterparty risk.