SIE Exam Question 1038: Answer and Explanation

Question: 1038

Which of the following describes the characteristics and risks of standardized options to be traded in a particular market, and is mandated by the Securities Exchange Act of 1934?

• A. Derivatives offering circular
• B. Options disclosure document
• C. Options proxy agreement
• D. Options registration statement

Correct Answer: B

Explanation:

An options disclosure document (ODD) describes the characteristics and risks of standardized options to be traded in a particular market, and is mandated by the Securities Exchange Act of 1934.