FINRA Series 7 Options 2025/2026 Exam
Questions and Answers | 100% Solved
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
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
Questions and Answers | 100% Solved
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
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
