In a WAII (When, As, and If Issued) transaction, the actual settlement date is determined:

• A. on trade date
• B. on the next business day
• C. when the new issue is printed and the offering has been closed
• D. at the discretion of the customer

Answer: (C)

In a When, As, and If Issued transaction, the commitment to buy or sell is made before the security is actually issued, but the deal isn’t settled until the issuer has completed the offering and the security is ready for delivery. The actual settlement date is set when the new issue is printed and the offering has been closed, meaning the security is officially issued and available for delivery.

That’s why the correct choice is that date. Settling on trade date would ignore the issuance process, and settling on the next business day or at the customer’s discretion doesn’t reflect the required completion of the primary offering.