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Finra SIE Exam - Topic 1 Question 28 Discussion
Actual exam question for
Finra's
SIE exam
Question #: 28
Topic #: 1
[All SIE Questions]
Topic #: 1
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?
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.
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