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Finra Series-7 Exam - Topic 3 Question 31 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 31
Topic #: 3
[All Series-7 Questions]

Bubba has not existing positions in his account and writes 1 XYZ July 60 put and 1 XYZ July 60 call.

What is this position called?

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Suggested Answer: D

short straddle. A straddle is a put and call on the same stock with the same strike price and expiration date.


by Herminia at May 08, 2022, 09:10 AM

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Edna
5 months ago
I thought you needed existing positions for that?
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Elbert
6 months ago
Nope, it's short straddle for sure.
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Marjory
6 months ago
Wait, isn't it a long straddle?
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Dorcas
6 months ago
Definitely a short combination.
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Chantell
6 months ago
That's a short straddle!
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Lashunda
6 months ago
I’m confused; I thought a long straddle involved buying both options. Is this really a short straddle?
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Merilyn
6 months ago
I practiced a question like this, and I believe it's a short straddle because he has no existing positions and is writing both options.
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Cyril
6 months ago
I'm not entirely sure, but I remember something about combinations. Could it be a short combination?
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Lashandra
6 months ago
I think this might be a short straddle since he's selling both a put and a call at the same strike price.
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Felix
6 months ago
Okay, let's see here. The issue seems to be related to the firewall configuration, so I'll focus on the options that address that.
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Bulah
6 months ago
Okay, let's see. Session duration and listening ports - those are definitely relevant for network profiling. I'm less sure about the other options, but I'll go with those two.
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Yun
6 months ago
Hmm, I'm a bit confused by the wording here. I'll need to make sure I understand the concept of service encapsulation before I can confidently answer this.
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