Series 7 Options Exam 2025
Questions and Answers
Long an ABC Apr 60 call
short an ABC Apr 70 call is a - ANSWER✔✔-For call options with the same expiry
month, the lower strike price will always have a higher value. In this case, the investor
is long the higher valued option.
A client writes 1 Jan 60 put
buys 1 Jan 50 put. This is a - ANSWER✔✔-Bull spread
Credit spread
Which of the following options strategies could be used by an investor who is bearish
on a stock? - ANSWER✔✔-Debit put spread
Long combination straddle
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, In any spread, put or call if you are buying the lower strike price - ANSWER✔✔-you
are a bull
When XYZ stock trades at 40 and an XYZ Oct 35 call trades at 5, which of the following
is TRUE? - ANSWER✔✔-The TV is zero
TV is premium - IV
A customer is long 10 XYZ Jan 60 calls, and XYZ declares a 20% stock dividend. On the
ex-date, the customer will have: - ANSWER✔✔-10 XYZ Jan 50 calls (120 shares per
contract)
Your customer tells you that she sees the exchange rate for the British pound in the spot
market is listed at 148.47. What do you tell her when she asks you what this means? -
ANSWER✔✔-1 pound = 1.4847 us cents
Customers seeking to open an options account may be granted approval by the: -
ANSWER✔✔-branch manager initially, with the subsequent approval of a ROP.
The writer of a combination expects the market to be: - ANSWER✔✔-Stable
The buyer of a combination expects the market to be: - ANSWER✔✔-Volitle
Buys 1 XYZ Nov 70 put
Sells 1 XYZ Nov 60 put when XYZ is selling for 65, this position is a: - ANSWER✔✔-
Bear spread: This put spread is established at a debit because the customer pays more
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
Questions and Answers
Long an ABC Apr 60 call
short an ABC Apr 70 call is a - ANSWER✔✔-For call options with the same expiry
month, the lower strike price will always have a higher value. In this case, the investor
is long the higher valued option.
A client writes 1 Jan 60 put
buys 1 Jan 50 put. This is a - ANSWER✔✔-Bull spread
Credit spread
Which of the following options strategies could be used by an investor who is bearish
on a stock? - ANSWER✔✔-Debit put spread
Long combination straddle
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, In any spread, put or call if you are buying the lower strike price - ANSWER✔✔-you
are a bull
When XYZ stock trades at 40 and an XYZ Oct 35 call trades at 5, which of the following
is TRUE? - ANSWER✔✔-The TV is zero
TV is premium - IV
A customer is long 10 XYZ Jan 60 calls, and XYZ declares a 20% stock dividend. On the
ex-date, the customer will have: - ANSWER✔✔-10 XYZ Jan 50 calls (120 shares per
contract)
Your customer tells you that she sees the exchange rate for the British pound in the spot
market is listed at 148.47. What do you tell her when she asks you what this means? -
ANSWER✔✔-1 pound = 1.4847 us cents
Customers seeking to open an options account may be granted approval by the: -
ANSWER✔✔-branch manager initially, with the subsequent approval of a ROP.
The writer of a combination expects the market to be: - ANSWER✔✔-Stable
The buyer of a combination expects the market to be: - ANSWER✔✔-Volitle
Buys 1 XYZ Nov 70 put
Sells 1 XYZ Nov 60 put when XYZ is selling for 65, this position is a: - ANSWER✔✔-
Bear spread: This put spread is established at a debit because the customer pays more
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
