FINRA SIE Practice Test

Upon Expiration, all in-the-money S&P 100 Index call options are settled by the delivery of which of the following? – ANSWER Cash Which of the following statements is true about treasury stock? – ANSWER It is issued stock that has been subsequently reacquired by the corporation In the event of a stock split, which of the following parties is required to maintain a record of the shareholders eligible to receive the additional shares? – ANSWER Transfer Agent Which of the following actions is required of a broker-dealer's anti-money laundering (AML) program? – ANSWER Designating an AML compliance officer A registered representative (RR) wants to participate in a private securities transaction. Which of the following actions must the RR take? – ANSWER Send written notice to his supervisor outlining the activity and compensation structure A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and simultaneously buys 100 shares of ABC stock for $35 per share. The customer will break even when the stock is selling at what price per share at expiration? – ANSWER $38 The call provision of a bond stipulates which of the following factors? – ANSWER Call date and call price When is interest on Treasury notes paid? – ANSWER Semiannually The owner of which of the following products is MOST exposed to inflationary risk? - ANSWERTreasury bonds (because it's long-term) A registered representative (RR) who wants to place a mutual fund advertisement must obtain written approval from which of the following parties? - ANSWERA registered principal of the RR's firm