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Basic Question 4 of 5

Which of the following statements is least accurate about the OTC derivatives?

A. These instruments are more flexible than the exchange-traded derivatives.
B. Margin money is generally not required in OTC derivatives.
C. These instruments are more liquid than the exchange-traded derivatives.

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe the basic features of derivative markets, and contrast over-the-counter and exchange-traded derivative markets

CFA® 2025 Level I Curriculum, Volume 5, Module 1.