Advantages of exchange-traded options over OTC options include all but which one of the following?
A) ease and low cost of trading
B) anonymity of participants
C) contracts that are tailored to meet the needs of market participants
D) no concerns about counterparty credit risk

Question

Quizplus · Accepted Answer

Exchange-traded options typically have standardized contracts, which may be less tailored to the specific needs of the market participants compared to OTC options. However, exchange-traded options provide several advantages over OTC options, including ease and low cost of trading, anonymity of participants, and no concerns about counterparty credit risk.

Advantages of Exchange-Traded Options Over OTC Options Include All but Which