Options Account Info And doc

Question 0

Uncovered writing of options requires what:

Answer 0

Approval by ROP

Question 1

ROP:

Answer 1

Registered options principal, must be specifically approved for trait options prior to the time the firm accepts an option order from the customer. Investment objectives change need reappoval

Question 2

Options agreement must be received by member firm within

Answer 2

15 “calendar day” from time is approved, abide by rules an limits

If not done in 15 calendar days only liquidating transaction can occur

Question 3

Suitability

Answer 3

No more than 15-20% of Persons assets committed to options

Question 4

Order in which actions must be taken when opening a new acct:

Answer 4

1. Obtain essential facts from customer
   Get securities sales supervisors
   Enter the order
   Obtain a signed option account agreement!!(15 calendar days)

Question 5

Cash account(options)

Answer 5

May pay in full for securities purchased and may: buy calls, buy puts, write both calls and puts.

Convertible bonds and warrants cannot be used to cover writing positions in cash acct

Question 6

Margin acct

Answer 6

May: buy calls and puts, long options maybe exercised on same day purchased, 100% of premium is always required on standard or traditional options.

Question 7

Can buy options in margin account but:

Answer 7

Can’t buy options on Margin

Question 8

Long standard or traditional options:

Answer 8

Have no loan value

Question 9

Margin account continued…

Answer 9

Write covered calls and puts
Spread positions
Write uncovered
Margin requirements for covered positions is 0

Question 10

Portfolio margin account:

Answer 10

High net worth traders. Use quantitative models to determine margin requirements by measuring risk and hedging.
Must be approved for uncovered options

Question 11

Trust accounts:

Answer 11

Examine trust agreement to insure that the trustees are empowered to trade to trade options

Question 12

Options disclosure document:

Answer 12

Customer must be furnished with a current ODD at or before the time customers acct is approved for options transaction. If changes need new ODD.

Question 13

Confirmations do not have to show:

Answer 13

Limit price, trading volume and open interest

Question 14

Customer complaints:

Answer 14

Member org must maintain and keep current at the principal place of business a separate central file (3years)