Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Finra SIE Exam - Topic 1 Question 28 Discussion

A customer wants to open an account to trade covered calls and puts. Which of the following communications must be provided to the customer prior to approving the account for trading?
D) Options disclosure document (ODD)
A) Prospectus
B) MSRB Investor Brochure
C) Margin disclosure statement

Finra SIE Exam - Topic 1 Question 28 Discussion

Actual exam question for Finra's SIE exam
Question #: 28
Topic #: 1
[All SIE Questions]

A customer wants to open an account to trade covered calls and puts. Which of the following communications must be provided to the customer prior to approving the account for trading?

Show Suggested Answer Hide Answer
Suggested Answer: D

FINRA Rule 2360 requires that customers receive the Options Disclosure Document (ODD), published by the Options Clearing Corporation (OCC), before they are approved to trade options. The ODD explains the risks and characteristics of options trading.

D is correct because the ODD is mandatory for options account approval.

A is incorrect because a prospectus is not specific to options trading.

B is incorrect because the MSRB Investor Brochure applies to municipal securities.

C is incorrect because a margin disclosure statement is required only for margin accounts.


by Avery at Jul 17, 2026, 05:21 AM

Limited Time Offer

25%

Off

Get Premium SIE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Lorriane
Agreed, D makes sense. It's crucial for options trading.
upvoted 0 times
...
Delisa
5 days ago
I think the right answer is D. Options disclosure document.
upvoted 0 times
...
Micaela
10 days ago
100% agree, ODD is a must before trading options!
upvoted 0 times
...
Brinda
15 days ago
Wait, are you sure the ODD is the only one needed? Seems too simple.
upvoted 0 times
...
Marleen
20 days ago
Yeah, the margin disclosure statement is important as well.
upvoted 0 times
...
Cortney
26 days ago
I thought a prospectus was necessary too?
upvoted 0 times
...
Tennie
1 month ago
Definitely need the Options disclosure document (ODD) for that.
upvoted 0 times
...
Cheryll
1 month ago
I practiced a similar question, and I think the ODD is the right answer, but I’m a bit confused about whether the margin disclosure statement is also necessary.
upvoted 0 times
...
Karon
1 month ago
I feel like the ODD is the key document for options trading, but I also recall something about needing a prospectus for certain investments.
upvoted 0 times
...
Krissy
2 months ago
I remember studying that the margin disclosure statement is important for margin accounts, but I’m not sure if it applies here since we’re talking about options.
upvoted 0 times
...
Amber
2 months ago
I think the options disclosure document is definitely required for trading options, but I’m not entirely sure if it’s the only thing needed.
upvoted 0 times
...

Save Cancel