In Regards to FLEX Options, Which of the Below Statements

question 15

Multiple Choice

In regards to FLEX options, which of the below statements is TRUE?

• A) A FLEX option is an option contract with some terms that have been customized and is traded on an options exchange and cleared and guaranteed by the associated clearinghouse for the exchange.
• B) A FLEX option cannot be created for individual stocks, stock indexes, and Treasury securities.
• C) The development of the FLEX option is a response to the declining over-the-counter market.
• D) The FLEX option represents a disconnection between listed options and OTC products.

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Definitions:

Manhattan Island

An island at the mouth of the Hudson River in New York City; historically significant as the founding location of New York.

Permanent Settlement

A term often associated with the agreement made by the British with landlords in colonial India, fixing revenues to be raised from land, making the landlords intermediaries between the farmers and the colonial government.

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An archipelago situated in the Atlantic Ocean, known for its picturesque beaches, clear waters, and vibrant culture; a sovereign country.