Question

Three family members each hold sizable call option positions with the same underlying equity security in their individual accounts. over the course of 3 days, monday through wednesday, each of the customers calls your broker/dealer and gives instructions to exercise all of their call options in that security. you recognize this as a potential violation of

Answer 1

I guess the correct answer is OCC exercise limit rules.

Three family members each hold sizable call option positions with the same underlying equity security in their individual accounts. Over the course of 3 days, Monday through Wednesday, each of the customers calls your broker/dealer and gives instructions to exercise all of their call options in that security. You recognize this as a potential violation of OCC exercise limit rules.