Reading 70: Option Markets and Contracts- LOSa(part 2)～ between, following, name

yanghon

 

LOS a, (Part 2): Differentiate between exchange-traded options and over-the-counter options.

Q1. Exchange-traded stock options are all of the following EXCEPT:

A)   subject to counterparty risk.

B)   backed by the options clearinghouse.

C)   typically for 100 shares of stock.

 

Q2. Exchange-traded options are NOT:

A)   backed by the Options Clearing Corporation.

B)   issued by dealers.

C)   standardized as to expirations and contract size.

 

Q3. Over-the-counter options are:

A)   very liquid.

B)   largely unregulated.

C)   the most important type in terms of volume.

 

yanghon

fficeffice" /> 

LOS a, (Part 2): Differentiate between exchange-traded options and over-the-counter options.

Q1. Exchange-traded stock options are all of the following EXCEPT:

A)   subject to counterparty risk.

B)   backed by the options clearinghouse.

C)   typically for 100 shares of stock.

Correct answer is A)        

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

 

Q2. Exchange-traded options are NOT:

A)   backed by the Options Clearing Corporation.

B)   issued by dealers.

C)   standardized as to expirations and contract size.

Correct answer is B)

Over-the-counter options are issued by dealers.

 

Q3. Over-the-counter options are:

A)   very liquid.

B)   largely unregulated.

C)   the most important type in terms of volume.

Correct answer is B)

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

 

duo1115

cbb

erpang8888

a

newstar0001

see

sorrybabyfish

a

dullmul

thx

hjl2000

d

connie198226

ss

kgbvvsscia

thanks