The CBOE Brought Numerous Innovations to the Option Market

question 45

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:

Benefiting Party

An individual or group that receives advantages or profits from a particular action or agreement.

Donee Beneficiary

A third party that benefits from a contract between two other parties, especially in a gift or donation context.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of the involved parties.

Promisor

The individual or party that makes a promise or commitment in a contract.