Which type of option is described as being traded on a qualified board or exchange?

The correct answer is that a listed option is traded on a qualified board or exchange. This means that these options are standardized and available to the public through an organized marketplace, which allows for greater transparency and liquidity compared to other types of options.

Listed options typically have established strike prices and expiration dates, making them easier for traders to understand and trade against a common framework. Exchanges such as the Chicago Board Options Exchange (CBOE) facilitate the trading of these options, ensuring that they meet regulatory requirements and providing a central marketplace for buyers and sellers.

Other types of options, such as over-the-counter options, are not traded on formal exchanges and involve negotiations between parties, often resulting in less standardization and potentially increased risk. Private options are generally agreements made between specific parties and are not available to the general public. Foreign options could refer to options issued on foreign exchanges, which may also have different rules and regulations compared to listed options.