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Finra Series-7 Exam - Topic 1 Question 81 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 81
Topic #: 1

[All Series-7 Questions]

Which of the following options positions is characteristic of a short straddle?

Along one put and short one call

Blong one call and short one put

Clong one put and short one call

Dlong one call and long one put

Show Suggested Answer

Suggested Answer: C

long one put and short one call. This is a short straddle. A position that is long one put and long one call is a long straddle.

by Britt at Feb 09, 2024, 02:52 PM

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Johnetta

9 months ago

Wait, are you guys sure about C? Sounds off to me.

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Ardella

9 months ago

B is definitely wrong, it's not a straddle.

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Bambi

10 months ago

I thought it was C, but I'm not sure.

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Elouise

10 months ago

Definitely not A or D.

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Vicente

10 months ago

A short straddle is when you sell both options, right?

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Odette

10 months ago

I believe the correct answer is the one where you sell both options, but I can't remember if it's the call or the put that's short.

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Tom

11 months ago

I’m a bit confused; I thought a short straddle was just one call and one put, but I can't recall if they were long or short.

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Yolando

11 months ago

I remember practicing a question like this, and I think the answer is related to being short on both a call and a put.

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Wayne

11 months ago

I think a short straddle involves selling both options, but I'm not sure which specific combination it is.

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Dorthy

11 months ago

I'm not totally sure about this, but I think a short straddle means you're short both the put and the call, so the answer is C. I'll double-check my notes just to be sure.

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Matilda

11 months ago

Hmm, I'm a bit confused on this one. I know a straddle involves buying a put and a call, but I can't remember if a short straddle means being long or short the options. I'll have to think this through carefully.

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Georgene

11 months ago

I'm pretty sure a short straddle involves being short both a put and a call, so I think the answer is C.

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Golda

11 months ago

Okay, I've got this. A short straddle means being short both the put and the call, so the correct answer is C - long one put and short one call.

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Layla

11 months ago

The key here is that we want the field to be displayed but not selected by default. I think B. Search Results is the best choice to achieve that. It's a straightforward solution if you understand how search configuration works.

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Gayla

11 months ago

Hmm, I'm a bit confused on this one. I'm not sure if the system carries inventory for the parent item or if it just represents the components bundled together. I'll have to think this through carefully.

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Cristy

2 years ago

I think D) long one call and long one put is not a characteristic position of a short straddle because it involves buying both options instead of selling.

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Barrie

2 years ago

I agree with A) long one put and short one call, it makes sense for a short straddle strategy.

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Nada

2 years ago

I think A) long one put and short one call is the correct position because it involves selling both a call and a put option.

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Twana

2 years ago

I'm not sure, can someone explain why C) long one put and short one call is the characteristic position?

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Carli

2 years ago

I disagree, I believe it is A) long one put and short one call.

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Fernanda

2 years ago

I think the characteristic position of a short straddle is C) long one put and short one call.

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