The CBOE brought numerous innovations to the option market. Which of the following is NOT such an innovation?
A) creation of a central marketplace
B) creation of a non-liquid secondary option market
C) introduction of a Clearing Corporation
D) standardization of all expiration dates
E) standardization of all exercise prices

Question

Quizplus · Accepted Answer

The creation of a non-liquid secondary option market is not an innovation brought by the CBOE. In fact, this would be counterproductive to their mission of creating a central marketplace where options can be easily bought and sold. The other options listed are all innovations brought by the CBOE, including the creation of a central marketplace, introduction of a Clearing Corporation, and standardization of expiration dates and exercise prices.

The CBOE Brought Numerous Innovations to the Option Market