Which of the following statements is true regarding equity options contracts?
A)The majority of options contracts are standardized,including strike prices and time to maturity.
B)Investors typically create options contracts to trade amongst themselves.
C)Options contracts are typically customized to suit the needs of each investor.
D)Options are available on all publicly traded U.S.stocks

Question

Quizplus · Accepted Answer

The majority of options contracts are standardized, which means that they have the same strike prices, expiration dates, and contract sizes. This allows for easy trading and market liquidity. While there are some customized options contracts, they are less common. Options are also not available for all publicly traded U.S. stocks, but only for certain ones.

Which of the Following Statements Is True Regarding Equity Options