Question

A registered representative completes the firm's standard options worksheet for a customer to illustrate the potential profits and risks of a covered call writing strategy. At or prior to sending the worksheet to the customer, which statement is true?

Answer 1

Step-by-step explanation:

The customer must receive the latest Option Disclosure Document. Prior to the first use, the option worksheet must have been approved by the firm's designated Registered Option Principal

The option disclosure document (ODD) is a publication issued by the Options Clearing Corporation (OCC) that serves as an important guide for options traders. The detailed document, formally titled Characteristics & Risks of Standardized Options, is extremely necessary for beginner options traders.