The designated Registered Options Principal is responsible for which functions

Writing of procedures for supervision of options accounts

Review of procedures for supervision of options accounts

Approval of options advertising

Option 4 - The approval of options account

Explanation:

First, an option is missing in the multiple options for the question.

Option 4 - the approval of options accounts

A Registered Options Principal is someone who is employed by a brokerage firm specifically to take charge of options accounts for the firms's clients. This is done by supervising, reviewing and approving the options account.

Looking at the options in the question, the Designated Registered Options principal (DROP) supervises the exposure of options but is not responsible for Writing or reviewing the procedures for the supervision of options account.

As is the practice with brokerage firms, there will be one designated registered options principal and another one called the alternate registered options principal. Where the alternate is the subordinate of the principal.

The responsibility of the DROP therefore as far as the question is concerned is the approval of options accounts