It is a violation of the securities laws to combine option contracts to achieve a customized payoff.

Name: It is a violation of the securities laws to combine option contracts to achieve a customized payoff.
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Quizplus · Accepted Answer

Combining option contracts to achieve a customized payoff, such as through strategies like spreads, straddles, or strangles, is a common and legal practice in financial markets, as long as it is done in compliance with market regulations and disclosure requirements.

It Is a Violation of the Securities Laws to Combine