SIE Understanding Products and Their Risks Practice Question 10

Question: 10

Which of the following is a characteristic of an option that is traded over the counter?

A. Terms may be negotiated.

B. Terms will be standardized.

C. Stock indexes will not be the underlying basis.

D. The holder must provide notification of intention to exercise by 4:00 p.m. eastern time on the third Friday of the expiration month.