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Finra Series-7 Exam - Topic 1 Question 12 Discussion

When an index option is exercised, settlement is made by:
C) cash
A) delivery of the underlying securities
B) delivery of a futures contract
D) any of the above

Finra Series-7 Exam - Topic 1 Question 12 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 12
Topic #: 1
[All Series-7 Questions]

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

Show Suggested Answer Hide Answer
Suggested Answer: C

cash. Index options are settled by payment of cash.


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

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Barrie
8 months ago
Cash is the standard, but I see why some might be confused.
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Isabelle
8 months ago
No way, it's not delivery of securities.
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Herschel
8 months ago
Wait, I thought it could be any of those?
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Donette
8 months ago
Definitely C, that's how it works!
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Maybelle
8 months ago
It's cash settlement for index options.
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Belen
9 months 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.
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Virgie
9 months ago
I’m a bit confused. I thought index options could settle in different ways, but I can't recall the specifics.
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Edda
9 months ago
I practiced a similar question where cash settlement was the answer for index options. I hope that’s the case here too!
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Rodrigo
9 months 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.
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Josephine
9 months ago
I'm a bit confused on this one. I'll have to guess and hope for the best.
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Lashonda
10 months 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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