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Series 66 Exam Lesson 38 Quiz Options pt 5 2024
Series 66 Exam Lesson 38 Quiz Options pt 5
This is a Series 66 Exam Lesson 38 Quiz Options pt 5: a free quiz for Series 66 Exam Lesson 38 Quiz which is covering Options part 5 . Try it and see how you do if you need help listen to the lesson over.
Series 66 Exam Lesson 38 Quiz Options pt 5
This is a Series 66 Exam Lesson 38 Quiz Options pt 5. Try it and see how you do if you need help listen to the lesson over.
Questions covered include
1. It is the purchasing and selling of put or call options with different strike prices, different expiration dates, or both.
A. combination
B. spread
C. straddle
D. strangle
2. In a spread, when you close out one position, you are expected to close out the other position at the same time.
A. True
B. False
3. The longer the option, the higher the time value premium.
A. True
B. False
4. As an option approaches its expiration date, the time value on that option reaches its maximum value at the expiration of that option.
A. True
B. False
5. This spread is designed to try to capture the decline of an option’s time value as the option approaches its expiration date.
A. calendar spread
B. long call spread
C. long put spread
D. short call spread
6. Which of the following is bearish?
A. long call spread
B. short call spread
C. short put spread
D. all of the above
7. The maximum profit for a long call spread is the net cost of the spread.
A. True
B. False
8. A short call spread is a credit spread.
A. True
B. False
9. You bought Jan 80 call at $10 and sold Feb 80 call at $20. Stock trades at $100 at expiration. Feb 80 call has $5 time value left. Which is true?
(Note: This transaction is a calendar spread. The expiration mentioned is the expiration of the call option on January.)
A. You shall buy back the February 80 call at $5.
B. You shall buy back the February 80 call at $20.
C. You shall buy back the February 80 call at $25.
D. The February 80 call would expire worthless.
10. You bought Nov 30 call at $3 and sold Dec 30 call at $5. Stock trades at $25 at Nov expiration. Dec 30 call has $1 time value left. Which is true?
(Note: This transaction is a calendar spread.)
A. The November 30 call would expire worthless.
B. The December 30 call would expire worthless.
C. You would have a net profit of $2 by closing your position on the spread.
D. all of the above
11. You bought Mar 60 call at $5 and sold Apr 70 call at $3. This transaction is most probably a ___.
A. long call spread
B. long put spread
C. short call spread
D. short put spread
12. You initiated a long call spread by buying Sept 70 call at $10 and selling Oct 80 call at $5. What is your maximum profit in this transaction?
A. $5
B. $10
C. $15
D. The maximum profit cannot be determined because the stock price is not given.
13. You initiated a long call spread by buying May 100 call at $15 and selling June 85 call at $8. What is your maximum loss in this transaction?
A. $7
B. $8
C. $15
D. $23
14. If you enter into a long call spread, which of the following pair of transactions would give you the greatest possible profit?
A. buying a July 30 call at $5 and selling an August 50 call at $4
B. buying a July 25 call at $6 and selling an August 40 call at $5
C. buying a July 40 call at $9 and selling an August 60 call at $5
D. All of the above transactions have equal maximum profit
15. You initiated a short call spread by buying a Jan 40 call at $4 and selling a Feb 30 call at $7. What is your maximum profit in this transaction?
A. $3
B. $7
C. $11
D. The maximum profit cannot be determined because the stock price is not given.
16. If you enter into a short call spread, which of the following transactions would you pair with buying a Nov 65 call at $6 to have the greatest possible profit?
A. selling a December 60 call at $7 per share
B. selling a December 50 call at $8 per share
C. selling a December 40 call at $9 per share
D. The greatest possible profit would depend upon the highest price that the stock could get.
17. You entered into a long put spread by buying Aug 95 put at $15 and selling Sept 75 put at $9. Which of the following is true?
A. A stock price of $100 at August expiration would give you the greatest profit.
B. A stock price of $85 at August expiration would give you the greatest profit.
C. A stock price of $80 at August expiration would give you the greatest profit.
D. A stock price of $70 at August expiration would give you the greatest profit.
18. In a long put spread, you bought Apr 55 put at $6 and sold May 35 put at $3. If the stock trades at $60 at April expiration, which is true?
A. The April 55 put would expire worthless.
B. The May 35 put would have an intrinsic value of $25.
C. You would lose $5 at April expiration.
D. You would profit $3 at April expiration.
19. What’s your initial credit if you bought Oct 80 put at $9 and Nov 90 put at $13 both for a stock initially trading at $85?
A. -$4
B. $4
C. $5
D. $8
20. In a short put spread, you bought June 60 put at $8 and sold July 75 put at $10. The stock trades at $70 at June expiration. Your net profit is:
A. You would have a $2 net profit.
B. You would have a $3 net profit.
C. You would have a $5 net profit.
D. You wouldn’t have a profit but instead
We hope you did well on this Series 66 Exam Lesson 38 Quiz Options pt 5
———————————
The Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The other possible exam would be the series 65 examination.
The Series 66 exam — the NASAA Uniform Combined State Law Examination — is a North American Securities Administrators Association (NASAA) exam administered by FINRA.
The exam consists of 100 scored questions. Candidates have 150 minutes to complete the exam. In order for a candidate to pass the Series 66 Exam, he/she must correctly answer at least 73 of the 100 scored questions.
There is no prerequisite for the Series 66 examination. However, the SIE and the Series 7 examination are co-requisites to the Series 66 Examination.
What is the Series 65 Exam?
The Series 65 is another path to becoming an Investment Advisor Representative (IAR)
Sometimes called the IAR in a box
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The NASAA, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
Again requisites for this exam are the SIE Exam and the Series 7 Exam Top Off
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 65.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 66 Exam Free Audio Lesson 13
Series 66 Exam Free Audio Lesson 13 is a lesson for the Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The Series 66 Exam consists of 100 questions. When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The Financial Industry Regulatory Authority, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 66.
The other possible exam path to become a IAR would be the series 65 examination.
What is the Series 65 Exam?
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 65 vs Series 66 Exam
The Series 65 exam is designed for those who do not have a Series 7 license. The content of both exams are similar though the Series 65 will be more heavily concentrated on Investment products and economics (like you would need to learn for the SIE and Series 7 Exam). … The Series 66 exam has a little more State law (such as what you will find in the Series 63 Exam) and some esoteric investment products.
Our audio lessons for both the Series 65 and Series 66 cover the material you would need to learn for the SIE and Series 7 exam so it may be a little more than you need for the Series 66 but we want you to be fully prepared!
The only difference between the two series of exam lessons (the 65 and 66) is that the Series 66 exam also covers the material needed for the Series 63 exam.
Our other website s for FINRA and other certification Exams include:
https://www.siepodcast.com
https://www.series7podcast.com
https://series66podcast.com
https://series65podcast.com
https://www.series7podcast.com
https://series6lessons.com
https://series22podcast.com
https://insuranceexampodcast.com
https://www.siepodcast.com
https://series79podcast.com
https://insuranceexampodcast.com
https://www.reexampodcast.com/
The post Series 66 Exam Lesson 38 Quiz Options pt 5 2024 appeared first on Audio Lessons for the Series 65 Exam.
View all episodes
By Franz Amussen
4.7
33 ratings
Series 66 Exam Lesson 38 Quiz Options pt 5
This is a Series 66 Exam Lesson 38 Quiz Options pt 5: a free quiz for Series 66 Exam Lesson 38 Quiz which is covering Options part 5 . Try it and see how you do if you need help listen to the lesson over.
Series 66 Exam Lesson 38 Quiz Options pt 5
This is a Series 66 Exam Lesson 38 Quiz Options pt 5. Try it and see how you do if you need help listen to the lesson over.
Questions covered include
1. It is the purchasing and selling of put or call options with different strike prices, different expiration dates, or both.
A. combination
B. spread
C. straddle
D. strangle
2. In a spread, when you close out one position, you are expected to close out the other position at the same time.
A. True
B. False
3. The longer the option, the higher the time value premium.
A. True
B. False
4. As an option approaches its expiration date, the time value on that option reaches its maximum value at the expiration of that option.
A. True
B. False
5. This spread is designed to try to capture the decline of an option’s time value as the option approaches its expiration date.
A. calendar spread
B. long call spread
C. long put spread
D. short call spread
6. Which of the following is bearish?
A. long call spread
B. short call spread
C. short put spread
D. all of the above
7. The maximum profit for a long call spread is the net cost of the spread.
A. True
B. False
8. A short call spread is a credit spread.
A. True
B. False
9. You bought Jan 80 call at $10 and sold Feb 80 call at $20. Stock trades at $100 at expiration. Feb 80 call has $5 time value left. Which is true?
(Note: This transaction is a calendar spread. The expiration mentioned is the expiration of the call option on January.)
A. You shall buy back the February 80 call at $5.
B. You shall buy back the February 80 call at $20.
C. You shall buy back the February 80 call at $25.
D. The February 80 call would expire worthless.
10. You bought Nov 30 call at $3 and sold Dec 30 call at $5. Stock trades at $25 at Nov expiration. Dec 30 call has $1 time value left. Which is true?
(Note: This transaction is a calendar spread.)
A. The November 30 call would expire worthless.
B. The December 30 call would expire worthless.
C. You would have a net profit of $2 by closing your position on the spread.
D. all of the above
11. You bought Mar 60 call at $5 and sold Apr 70 call at $3. This transaction is most probably a ___.
A. long call spread
B. long put spread
C. short call spread
D. short put spread
12. You initiated a long call spread by buying Sept 70 call at $10 and selling Oct 80 call at $5. What is your maximum profit in this transaction?
A. $5
B. $10
C. $15
D. The maximum profit cannot be determined because the stock price is not given.
13. You initiated a long call spread by buying May 100 call at $15 and selling June 85 call at $8. What is your maximum loss in this transaction?
A. $7
B. $8
C. $15
D. $23
14. If you enter into a long call spread, which of the following pair of transactions would give you the greatest possible profit?
A. buying a July 30 call at $5 and selling an August 50 call at $4
B. buying a July 25 call at $6 and selling an August 40 call at $5
C. buying a July 40 call at $9 and selling an August 60 call at $5
D. All of the above transactions have equal maximum profit
15. You initiated a short call spread by buying a Jan 40 call at $4 and selling a Feb 30 call at $7. What is your maximum profit in this transaction?
A. $3
B. $7
C. $11
D. The maximum profit cannot be determined because the stock price is not given.
16. If you enter into a short call spread, which of the following transactions would you pair with buying a Nov 65 call at $6 to have the greatest possible profit?
A. selling a December 60 call at $7 per share
B. selling a December 50 call at $8 per share
C. selling a December 40 call at $9 per share
D. The greatest possible profit would depend upon the highest price that the stock could get.
17. You entered into a long put spread by buying Aug 95 put at $15 and selling Sept 75 put at $9. Which of the following is true?
A. A stock price of $100 at August expiration would give you the greatest profit.
B. A stock price of $85 at August expiration would give you the greatest profit.
C. A stock price of $80 at August expiration would give you the greatest profit.
D. A stock price of $70 at August expiration would give you the greatest profit.
18. In a long put spread, you bought Apr 55 put at $6 and sold May 35 put at $3. If the stock trades at $60 at April expiration, which is true?
A. The April 55 put would expire worthless.
B. The May 35 put would have an intrinsic value of $25.
C. You would lose $5 at April expiration.
D. You would profit $3 at April expiration.
19. What’s your initial credit if you bought Oct 80 put at $9 and Nov 90 put at $13 both for a stock initially trading at $85?
A. -$4
B. $4
C. $5
D. $8
20. In a short put spread, you bought June 60 put at $8 and sold July 75 put at $10. The stock trades at $70 at June expiration. Your net profit is:
A. You would have a $2 net profit.
B. You would have a $3 net profit.
C. You would have a $5 net profit.
D. You wouldn’t have a profit but instead
We hope you did well on this Series 66 Exam Lesson 38 Quiz Options pt 5
———————————
The Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The other possible exam would be the series 65 examination.
The Series 66 exam — the NASAA Uniform Combined State Law Examination — is a North American Securities Administrators Association (NASAA) exam administered by FINRA.
The exam consists of 100 scored questions. Candidates have 150 minutes to complete the exam. In order for a candidate to pass the Series 66 Exam, he/she must correctly answer at least 73 of the 100 scored questions.
There is no prerequisite for the Series 66 examination. However, the SIE and the Series 7 examination are co-requisites to the Series 66 Examination.
What is the Series 65 Exam?
The Series 65 is another path to becoming an Investment Advisor Representative (IAR)
Sometimes called the IAR in a box
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The NASAA, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
Again requisites for this exam are the SIE Exam and the Series 7 Exam Top Off
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 65.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 66 Exam Free Audio Lesson 13
Series 66 Exam Free Audio Lesson 13 is a lesson for the Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The Series 66 Exam consists of 100 questions. When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The Financial Industry Regulatory Authority, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 66.
The other possible exam path to become a IAR would be the series 65 examination.
What is the Series 65 Exam?
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 65 vs Series 66 Exam
The Series 65 exam is designed for those who do not have a Series 7 license. The content of both exams are similar though the Series 65 will be more heavily concentrated on Investment products and economics (like you would need to learn for the SIE and Series 7 Exam). … The Series 66 exam has a little more State law (such as what you will find in the Series 63 Exam) and some esoteric investment products.
Our audio lessons for both the Series 65 and Series 66 cover the material you would need to learn for the SIE and Series 7 exam so it may be a little more than you need for the Series 66 but we want you to be fully prepared!
The only difference between the two series of exam lessons (the 65 and 66) is that the Series 66 exam also covers the material needed for the Series 63 exam.
Our other website s for FINRA and other certification Exams include:
https://www.siepodcast.com
https://www.series7podcast.com
https://series66podcast.com
https://series65podcast.com
https://www.series7podcast.com
https://series6lessons.com
https://series22podcast.com
https://insuranceexampodcast.com
https://www.siepodcast.com
https://series79podcast.com
https://insuranceexampodcast.com
https://www.reexampodcast.com/
The post Series 66 Exam Lesson 38 Quiz Options pt 5 2024 appeared first on Audio Lessons for the Series 65 Exam.
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