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FINRA Series 63 (NASAA)

Category - Series 63

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Alice Wonder called her broker on Tuesday, August 10^th, with a market order to buy 10 calls on the stock of Abbott Laboratories. Under normal conditions, Alice will have to pay for the calls on

Wednesday, August 11^th.
Tuesday, August 10^th.
Friday, August 13^th.
Monday, August 16^th.

Explanation

Answer: A - If Alice places a market order to buy call options on Tuesday, August 10^th, she will have to pay for them on Wednesday, August 11^th, the next business day. Options and U.S. government bonds settle on the day after the trade date, or T + 1.

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FINRA Series 63 (NASAA)

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FINRA Series 63 (NASAA)

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