Advantages of Exchange-Traded Options Over OTC Options Include All but Which

question 24

Multiple Choice

Advantages of exchange-traded options over OTC options include all but which one of the following?

• A) ease and low cost of trading
• B) anonymity of participants
• C) contracts that are tailored to meet the needs of market participants
• D) no concerns about counterparty credit risk

---

Definitions:

Income

Sums of money attained, usually on a fixed schedule, from work or investment undertakings.

Interest Rate

The proportion at which principal loaned money is repaid with interest to the lender over time, usually as an annual rate.

Utility Function

A mathematical representation that ranks individuals' or entities' preferences over a set of goods or outcomes.

Consumption

The act of consuming goods and services either by individuals or society as a whole, central to economic analysis of demand and spending.