The CBOE Brought Numerous Innovations to the Option Market,which of the Following

question 32

Multiple Choice

The CBOE brought numerous innovations to the option market,which of the following is not such an innovation?

• A) Creation of a central marketplace
• B) Creation of a non-liquid secondary option market
• C) Introduction of a Clearing Corporation
• D) Standardization of all expiration dates
• E) Standardization of all exercise prices

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Definitions:

Tax Rate

The proportion of income that the government taxes an individual or company.

Tax Bill

A statement from a governmental authority detailing the amount of taxes owed by an individual or entity, specifying due dates and payment instructions.

Proration

The act of distributing or assigning an amount in proportion to a certain measure, often applied in finance and accounting for dividing expenses or revenues.

Taxable Year

A 12-month period for which tax returns are calculated and filed, often aligning with the calendar year or a company’s fiscal year.