When must the options Disclosure Document Odd be furnished to a customer quizlet?

Q: When must the options disclosure document be delivered?

At or prior to the time a customers account is approved for trading in a particular kind of option by a member or member organization, such member or member organization shall deliver to the customer the applicable current Options Disclosure Document.

The best answer is C. In a joint account with tenancy in common, each owner has a divided interest in the account. A specific percentage ownership is assigned to each participant. In this case, the brother contributing $100,000 out of $300,000 total will have a 1/3 interest, while the other brother contributing $200,000 out of $300,000 total will have a 2/3 interest. With tenancy in common, if one party should die, that person's interest goes to his beneficiary or estate. Thus, this form of ownership meets the brothers' wishes. A joint tenants with rights of survivorship account is not appropriate since each party owns an undivided interest in this account. If one person dies, the other party wholly owns that account.

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At what time must a firm provide an options Disclosure Document odd to a customer?
When must the options disclosure document be delivered?
When must a new options customer return a signed option agreement?
Which of the following documents must be provided to the customer prior to approval?

The best answer is A.
Sophisticated institutional investors, such as hedge funds, open accounts called "prime brokerage accounts." The "prime broker" is a firm that caters to institutional clients, such as Morgan Stanley, Goldman Sachs, J. P. Morgan or Merrill Lynch. The main advantage of using a "prime broker" is that the hedge fund can route its trades to different executing brokers other than the "prime broker." In return for sending its trades to different executing brokers and paying them commissions, the hedge fund gets research and other valuable market information from the executing brokers.
The trades done through the executing brokers "roll up" to the prime broker. The prime broker holds all of the positions, arranges for stock loans on short positions taken, provides financing (margin loans) on positions taken, and provides consolidated account statements, among other services. Because all positions taken are consolidated, the loan amounts against them are larger and result in lower interest rates than if the positions were held separately at different brokerage firms.

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At what time must a firm provide an options Disclosure Document odd to a customer?

(11) Delivery of Current Disclosure Documents Every member shall deliver the current ODD to each customer at or prior to the time such customer's account is approved for trading options issued by The Options Clearing Corporation, other than an OCC Cleared OTC Option.

When must the options disclosure document be delivered?

At or prior to the time a customer's account is approved for trading in a particular kind of option by a member or member organization, such member or member organization shall deliver to the customer the applicable current Options Disclosure Document.

When must a new options customer return a signed option agreement?

The customer has 15 calendar days from account opening to return the signed options agreement. If they do not return it in time, the account will be restricted to only closing transactions. For example, the customer can close out a short put by performing a closing purchase.

Which of the following documents must be provided to the customer prior to approval?

Options regulations dictate that an Options Disclosure Document must be provided to the customer prior to the account being approved for options transactions. This would especially be the case in relation to accounts where customers intend to perform uncovered options transactions.