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Finra Series-7 Exam - Topic 2 Question 27 Discussion

Posted by Tiffiny on May 07, 2022 at 04:55 AM

The price an investor pays for a listed option is called the

Suggested Answer: C

premium. That's the term for the option cost.


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11 comments · newest first
GE
Gerald 1 year ago
Really? I always thought it was more complicated than that.
LI
Ling 1 year ago
Nope, definitely the premium.
SH
Shenika 1 year ago
Wait, I thought it was the strike price?
PA
Pansy 1 year ago
Totally agree, premium is the right term.
GE
Georgene 1 year ago
It's called the premium!
CO
Corazon 1 year ago
I feel like the exercise price is related, but it’s not the same as what we pay for the option.
AL
Alyce 1 year ago
The term "strike price" keeps coming to mind, but I don't think that's what they mean here.
MO
Mozell 1 year ago
I remember practicing a question like this, and I think the correct answer is C, premium.
CA
Catalina 1 year ago
I think the price we pay for an option is called the premium, but I'm not entirely sure.
DE
Delpha 1 year ago
Okay, let's see. I know we need IIS and .NET, but the database component is throwing me off a bit. I'll have to double-check the documentation on this.
JA
Janine 1 year ago
This looks like a tricky question. I'll need to carefully consider the options and think through the logic.
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