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.
E) None of the options.

Question

Quizplus · Accepted Answer

Exotic options are primarily traded in the over-the-counter (OTC) market rather than on formal exchanges. This is because they are complex financial instruments that are customized to meet specific needs of the parties involved, which makes them less standardized and not suitable for trading on traditional exchanges.

Trading in "Exotic Options" Takes Place Primarily