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Finra Series-7 Exam - Topic 3 Question 22 Discussion

Bubba buys one XYZ October 80 put and sells one XYZ October 70 put.What is his position called?
B) money spread
A) calendar spread
C) straddle
D) combination

Finra Series-7 Exam - Topic 3 Question 22 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 22
Topic #: 3
[All Series-7 Questions]

Bubba buys one XYZ October 80 put and sells one XYZ October 70 put.

What is his position called?

Show Suggested Answer Hide Answer
Suggested Answer: B

money spread. Since the strike prices are different, but not the expiration date, this is a money spread (sometimes called a ''price spread'' or a ''vertical spread'').


by Nobuko at May 08, 2022, 02:12 PM

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Gaynell
8 months ago
Yeah, it's a money spread for sure!
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Carmen
8 months ago
Wait, is it really called a combination? Sounds off.
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Derick
8 months ago
I thought it was a straddle at first, but nope!
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Maybelle
8 months ago
Definitely not a calendar spread.
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Regenia
8 months ago
That's a bull put spread!
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Katheryn
9 months ago
I feel like this is definitely not a calendar spread, but I can't remember the exact term for this setup.
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Adolph
9 months ago
I practiced a similar question, and I think it was called a straddle, but that doesn't seem right here.
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Genevive
9 months ago
I'm not entirely sure, but I remember something about spreads. Could it be a money spread?
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Yolande
9 months ago
I think this might be a combination since he's buying one put and selling another at a different strike price.
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Isreal
9 months ago
Hmm, I'm a bit unsure about this one. The wording is a bit confusing, and I'm not totally familiar with all the Incoterms. I'll have to think it through carefully and make sure I understand the differences between the options.
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Joye
10 months ago
Okay, the instructions seem clear. I'll make sure to check the status of the services after the install and then access the web interface.
upvoted 0 times
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