SIE Exam Question 84: Answer and Explanation

Question: 84

Prior to the Options Disclosure Document (ODD) being delivered, a registered representative may do which of the following:

• A. Solicit a sale of an options contract as long as the ODD is sent before or at the time of sale
• B. Place an options trade for a client’s account as long as the ODD is sent the same day
• C. Place an options trade for a client’s account as long as the ODD is sent before settlement
• D. Limit discussions to general descriptions of the options

Correct Answer: D

Explanation:

Prior to the Options Disclosure Document (ODD) being delivered, a registered representative must limit discussion to general descriptions of the options. Solicitations and trades are not allowed prior to delivery of the ODD.