he exchanges require customers to exercise their listed equity option positions with member firms no later than:
A customer owns an Eastman Kodak October 50 listed call option. Eastman Kodak has declared a $1.00 cash dividend. When Eastman Kodak sells ex-dividend, which of the following will reflect the price and the number of shares of the Eastman Kodak October 50 option?
The sale of a put would be considered covered when:A)100 shares of the underlying stock are long in the account. B)cash equal to the exercise price is in the account. C)a put with a lower strike price is long in the account. D)a call with the same strike price is held in the account.
Under Regulation T, when a customer purchases securities, payment must be received by the broker/dealer no later than:A)two business days after settlement date. B)one business day before settlement date. C)one business day after settlement date. D)the settlement date.
When must a new options customer-who has not yet traded options-receive the Options Clearing Corporation's current disclosure document?A)Within 15 days of the ROP's approval of the customer's account for options trading. B)No later than 15 days after the ROP signs the options customer approval form. C)At or before the time the registered representative signs the customer approval form. D)At or before the time the account receives approval for options trading.
On the day prior to the ex-dividend date for an ordinary cash dividend, a holder of a call tenders an exercise notice. The investor will be:
The holder of a call will get a dividend only if the option is exercised prior to the ex-dividend date. This will result in the buyer being listed as holder of record on the books of the transfer agent. (16-5, 4-7)
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