You are an analyst at Bank Alpha. You were given the task to determine whether under Basel II your bank can use the simplified approach to report option exposure instead of the intermediate approach. Which of the following criteria would your bank have to satisfy in order for it to use the simplified approach?
A. The bank writes options, but its options trading is insignificant in relation to its overall business activities.
B. The bank purchases and writes options and has significant options trading.
C. The bank solely purchases options, and its options trading is insignificant in relation to its overall business activities.
D. The bank purchases and writes options, but its options trading is insignificant.