Chapter 04 · Section 4.1
Automated Exchanges
Which of the following is generally understood to be an automated option exchange?
c) An exchange on which a computer matches buy and sell orders and quotes.
Yes. The computer decides which buy orders or quotes are matched to which sell orders or quotes.Continue
a) An exchange on which premiums are determined by computer.
b) An exchange on which bids and asks are entered by the market participants into a computer and visibly displayed.
(Click here for help)