The Main Advantage(s) of Over-The-Counter Foreign Currency Options Over Exchange

question 39

Multiple Choice

The main advantage(s) of over-the-counter foreign currency options over exchange traded options is (are) :

• A) expiration dates tailored to the needs of the client.
• B) amounts that are tailor made.
• C) client desired expiration dates.
• D) all of the above

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Definitions:

Dividend-Payout Policies

Strategies adopted by companies to decide the size and pattern of cash dividends to shareholders.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.

Volatility

Refers to the degree of variation of a trading price series over time, indicating the level of uncertainty or risk associated with a security's value.

Hedge Ratio

A ratio used to adjust or hedge the risk exposure of an investment by comparing the value of the position protected to the value of the protective instrument.