General Securities Sales Supervisor (Series10) Practice Exam

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Prepare for the General Securities Sales Supervisor Exam. Practice with flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

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What is the earliest settlement date for a seller's option trade under NYSE rules?

A T+1
B T+2
C T+3
D T+4

The correct answer is: B T+2

The correct answer is the T+2 settlement date for a seller's option trade under NYSE rules. In a seller's option trade, the seller has the flexibility to choose the date of settlement, but it must adhere to the regulations set forth by the exchange. Under NYSE guidelines, the earliest possible settlement date for a seller's option is T+2, which means that the transaction will settle two business days after the trade date. This rule is in line with the standard settlement practices for most securities in the U.S. markets, making it a key concept for anyone involved in securities trading. Understanding this timeframe is crucial for traders and supervisors alike, as it impacts cash flow, risk management, and overall transaction planning within the securities market. It's important to be aware of the implications of settlement timing to ensure compliance and efficient trading operations.