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Finra Series-7 Exam - Topic 1 Question 12 Discussion

Posted by Katina on May 08, 2022 at 09:48 PM

When an index option is exercised, settlement is made by:

Suggested Answer: C

cash. Index options are settled by payment of cash.


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11 comments · newest first
BA
Barrie 11 months ago
Cash is the standard, but I see why some might be confused.
IS
Isabelle 12 months ago
No way, it's not delivery of securities.
HE
Herschel 12 months ago
Wait, I thought it could be any of those?
DO
Donette 12 months ago
Definitely C, that's how it works!
MA
Maybelle 1 year ago
It's cash settlement for index options.
BE
Belen 1 year ago
I’m pretty confident that when you exercise an index option, it’s cash settlement. That’s what I learned in my review sessions.
VI
Virgie 1 year ago
I’m a bit confused. I thought index options could settle in different ways, but I can't recall the specifics.
ED
Edda 1 year ago
I practiced a similar question where cash settlement was the answer for index options. I hope that’s the case here too!
RO
Rodrigo 1 year ago
I think index options are settled in cash, but I'm not completely sure. I remember something about it being different from stock options.
JO
Josephine 1 year ago
I'm a bit confused on this one. I'll have to guess and hope for the best.
LA
Lashonda 1 year ago
This seems like a straightforward question about when to use a dimensional function in a report's Query calculation. I think the key is understanding the differences between dimensional and non-dimensional data sources.
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