Series 7 Exam Question 90: Answer and Explanation

Question: 90

Sharlene W. wishes to open an options account by purchasing 10 WXY 50 calls. Sharlene must sign an Options Account Agreement at what point?

• A. At or prior to approval of the account
• B. At or prior to her first transaction
• C. Within 15 days after the approval of the account
• D. Prior to the first account statement

Correct Answer: C

Explanation:

C. Prior to opening the account, Sharlene would have to receive an Options risk Disclosure Document (ODD). Once the account has been approved, Sharlene would have 15 days to sign and return the Options Account Agreement (OAA).