In regards to FLEX options, which of the below statements is TRUE?

Question

Quizplus · Accepted Answer

A FLEX option is an option contract that allows investors to customize certain terms, such as expiration date, strike price, and exercise style. It is traded on an options exchange and cleared and guaranteed by the associated clearinghouse for the exchange. Therefore, choice A is true. Choice B is false as FLEX options can be created for individual stocks, stock indexes, and Treasury securities. Choice C is partly true but does not provide a complete picture as the development of FLEX options was not solely a response to the declining OTC market. Choice D is also false as FLEX options aim to bridge the gap between listed options and OTC products, rather than creating a disconnection.

In Regards to FLEX Options, Which of the Below Statements