Options Strategies
If a customer fails to return the signed Options Agreement within the required time frame, the broker-dealer must:
If the Options Agreement is not returned within 15 days of account approval, no new positions may be opened. However, the customer may still close existing positions or exercise existing options.
Complete Analysis & Legal Rationale
If the Options Agreement is not returned within 15 days of account approval, no new positions may be opened. However, the customer may still close existing positions or exercise existing options.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.