What does the OCC set for all listed options?

The correct choice is related to the role of the Options Clearing Corporation (OCC) in establishing standard parameters for options trading. The OCC sets standard exercise prices and expiration dates for all listed options to create uniformity and consistency in the options market. By establishing specific structures for these aspects, the OCC helps both buyers and sellers in the options market know what to expect, effectively facilitating trading and improving market efficiency.

Having standard exercise prices means that all options on a particular underlying asset will have consistent price points at which they may be exercised, which aids in pricing transparency and helps investors in making informed decisions. Similarly, standardized expiration dates ensure that all options contracts have the same availability for trading, allowing for clearer planning of investment strategies and trade execution.

The other options either do not align with the responsibilities of the OCC or relate to different aspects of market regulation that are not specifically set by the OCC. For instance, maximum premiums and minimum trading volumes are not determined by the OCC; they can be influenced by market supply and demand. Market liquidity provisions, while crucial for the functioning of the markets, are addressed by market makers and other participants rather than being specifically set by an organization like the OCC. Therefore, the establishment of standard exercise prices and expiration dates is the key