Who determines whether options on a company's stock will be listed?
A) the clearing house
B) Securities Exchange Commission
C) the company
D) the exchange
E) none of the above

Question

Quizplus · Accepted Answer

The exchange, such as the New York Stock Exchange or NASDAQ, determines whether options on a company's stock will be listed. The exchange must first approve the underlying stock for trading before options can be listed. The Securities Exchange Commission (SEC) regulates the options market but does not determine which options are listed. The clearinghouse plays a role in clearing and settling options transactions but does not decide which options are listed. The company whose stock is being traded also does not have a direct say in whether options on their stock will be listed.

Who Determines Whether Options on a Company's Stock Will Be