General Securities Representative (Series 7) Practice Exam – Your All-in-One Guide to Exam Success!

A client can trade options before signing the options agreement if they have received the OCC (Options Clearing Corporation) disclosure document. This document serves as important educational material that outlines the risks and characteristics of trading options. It aims to ensure that clients understand what they are engaging in before they formally agree to the terms of trading options.

The key point is that receiving the OCC disclosure document allows clients to have a foundational understanding of what options trading entails, which is a fundamental requirement before entering into trading agreements. However, it is crucial to note that while a client can execute trades after receiving this document, they must still sign the options agreement eventually to continue trading options.

In this case, the other options do not reflect scenarios that allow for pre-agreement trading. Paying upfront fees does not exempt a client from the requirement of having a signed agreement, having a pre-existing account in itself does not satisfy the regulatory requirements to trade options, and it is generally acknowledged that clients cannot trade options until they have signed the options agreement, as this is a protective measure for both the client and the brokerage.