How Does the ASX Increase Liquidity in Its Options Market

question 65

Multiple Choice

How does the ASX increase liquidity in its options market?

• A)It concentrates trading in a small number of contracts.
• B)Brokers must charge fixed, low commissions.
• C)It has only four contract dates per year.
• D)It authorises dealers to make the market for specific contracts.
• E)It allows options to be written over any listed share.

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Definitions:

Loyalty Segmentation

The process of dividing a customer base into groups based on the degree of loyalty they exhibit towards a brand or product.

Micromarketing

A marketing strategy focused on a small group of highly targeted customers, tailoring products and marketing messages to their specific needs and preferences.

Population Increases

refers to the rise in the number of people in a particular area, affecting various aspects of society including demands for goods and services.

Fixed Costs

Those costs that remain essentially at the same level, regardless of any changes in the volume of production.