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A junior analyst at a large bank is examining an existing portfolio of option contracts. The analyst notices that the portfolio holds a large number of both exchange-traded and OTC positions and focuses on the similarities and differences between the two. Which of the following would the analyst most likely identify as a difference 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.