Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Finra Series-7 Exam - Topic 3 Question 14 Discussion

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?
D) long two XYZ July 15 calls
A) long one XYZ July 30 call
B) long one XYZ July 30 call and short one XYZ July 30 call
C) long two XYZ July 30 calls

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

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Marcos
10 months ago
Nope, it's definitely not D, that doesn't make sense!
upvoted 0 times
...
Denae
10 months ago
I thought it would just adjust the strike price, not double the calls.
upvoted 0 times
...
Bulah
11 months ago
Wait, how does a split change the number of calls?
upvoted 0 times
...
Dana
11 months ago
Totally agree, C is the right answer!
upvoted 0 times
...
Hubert
11 months ago
It's C, long two XYZ July 30 calls after the split.
upvoted 0 times
...
Jesusita
11 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.
upvoted 0 times
...
Luann
11 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.
upvoted 0 times
...
Salena
11 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?
upvoted 0 times
...
Arleen
11 months ago
I think after a 2-for-1 split, the number of options doubles, so maybe it's two calls?
upvoted 0 times
...
Shay
11 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.
upvoted 0 times
...
Shawnda
11 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.
upvoted 0 times
...

Save Cancel