General Securities Representative (Series 7) Practice Exam

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How many days does a customer have to sign an options agreement once it is sent to them?

10 days
15 days
30 days
60 days

The correct answer is: 15 days

A customer has 15 days to sign an options agreement once it has been sent to them. This specific time frame is critical because it ensures that customers understand the risks and obligations involved when trading options. The 15-day period allows sufficient time for the customer to review the agreement, ensure they understand its terms, and return it to the brokerage firm. If the customer does not return the signed options agreement within this period, they can still trade options, but only on a closing basis. This means they may close existing positions but cannot open new ones until the agreement is signed and returned. This rule emphasizes the importance of having a comprehensive understanding of options trading risks before engaging in such transactions.