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Finra Series-7 Exam - Topic 3 Question 14 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 14
Topic #: 3
[All Series-7 Questions]

Bubba held one XYZ July 30 listed call option when XYZ split 2 for 1.

What is the resulting position, Bubba has on the Option Clearing Corporation's record?

Show Suggested Answer Hide Answer
Suggested Answer: D

long two XYZ July 15 calls. Double the number of contracts and half the strike price. This is similar to XYZ shareholders doubling the number of shares they hold at the lower price.


by Blair at May 06, 2022, 11:32 PM

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Marcos
4 months ago
Nope, it's definitely not D, that doesn't make sense!
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Denae
4 months ago
I thought it would just adjust the strike price, not double the calls.
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Bulah
4 months ago
Wait, how does a split change the number of calls?
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Dana
4 months ago
Totally agree, C is the right answer!
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Hubert
5 months ago
It's C, long two XYZ July 30 calls after the split.
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Jesusita
5 months ago
I feel like the answer has to be two calls at the same strike price, but I'm confused about the specifics of the split adjustments.
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Luann
5 months ago
I practiced a similar question, and I believe it was just one call that gets adjusted. But I can't recall the details.
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Salena
5 months ago
I'm not entirely sure, but I remember something about the strike price adjusting too. Could it be the July 15 calls instead?
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Arleen
5 months ago
I think after a 2-for-1 split, the number of options doubles, so maybe it's two calls?
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Shay
5 months ago
This is a straightforward question. The four basic data types are Float, Boolean, Long, and Date Time. I've used those in my TIBCO projects before, so I'm familiar with them.
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Shawnda
5 months ago
I feel pretty good about option B. Deleting the dashboard itself shouldn't delete the underlying reports, just the components within the dashboard.
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