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A junior analyst at a large financial institution is analyzing an existing portfolio that comprises various option contracts. The analyst notes that the portfolio includes a significant number of both exchange-traded options and over-the-counter (OTC) options. With the aim of understanding the key differences between these two types of options, what is the most likely distinctive characteristic that the analyst would identify between exchange-traded options and OTC options?
A
Most exchange-traded options are European-style, while most options traded OTC are American-style.
B
Options traded OTC have flexible terms, while the terms of exchange-traded options are generally standardized.
C
Exchange-traded options typically have longer maturities than those traded OTC.
D
Foreign exchange and interest rate options are primarily exchange-traded, while options on individual equities are usually OTC.