Trading in "exotic options" takes place primarily
A)on the New York Stock Exchange.
B)in the over-the-counter market.
C)on the American Stock Exchange.
D)in the primary marketplace.

Question

Quizplus · Accepted Answer

Exotic options are customized contracts that are not traded on an organized exchange. They are usually traded in the over-the-counter (OTC) market between private parties, such as banks and hedge funds. Therefore, the correct answer is B - in the over-the-counter market.

Trading in "Exotic Options" Takes Place Primarily