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Finra Series-7 Exam - Topic 3 Question 98 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 98
Topic #: 3
[All Series-7 Questions]

Bubba plans to borrow some money and pledge securities as collateral.

Which of the following can he not use as collateral?

Show Suggested Answer Hide Answer
Suggested Answer: C

long one put and short one call. This is a short straddle. A position that is long one put and long one call is a long straddle.


by Francesco at Sep 19, 2024, 07:43 AM

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Tasia
4 months ago
I thought all treasury securities were fair game!
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An
4 months ago
Yup, only marketable securities qualify.
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Allene
4 months ago
Wait, are you sure about that?
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Lura
5 months ago
Totally agree, they aren't eligible!
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Carmen
5 months ago
You can't use Series EE bonds as collateral.
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Emelda
5 months ago
I definitely recall that treasury bills, notes, and bonds are usually acceptable, but I can't shake the feeling that Series EE bonds are the odd one out here.
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Jolene
5 months ago
I’m a bit uncertain about this one. I thought all treasury securities could be used, but maybe not the EE bonds?
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Glen
5 months ago
This question feels familiar; I think we practiced something similar where only certain government securities were acceptable.
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Adrianna
5 months ago
I think I remember that Series EE bonds are not typically used as collateral, but I'm not entirely sure.
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Sylvia
5 months ago
This is a good question to test our knowledge of the different types of Treasury securities and their eligibility as collateral. I'll carefully consider each option and eliminate the one that doesn't fit.
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Ressie
5 months ago
Okay, I've got this. Series EE bonds can't be used as collateral, but the other Treasury securities listed should all be acceptable. I'll mark that as my answer and move on to the next question.
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Iraida
5 months ago
Hmm, I'm a little unsure about this one. I know Treasury securities are generally considered safe collateral, but I'm not sure if there are any restrictions on the specific types that can be used. I'll need to review my notes to see if I can remember the details.
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Alexia
5 months ago
This seems like a straightforward question about the types of securities that can be used as collateral. I'll need to think through the different options and eliminate the ones that can't be used.
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Clement
6 months ago
Wait, I'm confused. I thought all Treasury securities were eligible as collateral. Why would Series EE bonds be excluded? I better double-check my understanding before answering this.
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Pansy
11 months ago
If I can't use my treasured childhood action figures, I'm not going to borrow any money. They're worth their weight in gold!
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Tamra
11 months ago
Hmm, I'm pretty sure I can use my collection of limited edition Pokemon cards as collateral. They're basically the same as cash, right?
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Margery
9 months ago
D) US treasury bonds
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Nathan
9 months ago
C) US treasury notes
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Shelton
9 months ago
B) US treasury bills
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Emogene
10 months ago
A) Series EE bonds
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Jeffrey
11 months ago
Series EE bonds? What is this, the 1950s? Get with the times, Alverta!
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Barrett
9 months ago
True, it's all about the value they represent.
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Holley
9 months ago
Yeah, they may be old-fashioned but they still hold value.
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Diego
9 months ago
Series EE bonds are still commonly used as collateral, Alverta.
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Stanford
9 months ago
D) US treasury bonds
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Marva
10 months ago
C) US treasury notes
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Apolonia
10 months ago
B) US treasury bills
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Beth
11 months ago
A) Series EE bonds
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Alverta
11 months ago
Wait, why can't I use my secret stash of gold bullion as collateral? That's the good stuff!
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Chantell
9 months ago
That makes sense. I'll stick to the options listed.
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Phillip
9 months ago
I think only certain types of securities are accepted as collateral.
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Ettie
9 months ago
But why not? It's valuable!
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Brock
9 months ago
You can't use gold bullion as collateral because it's not listed as an option.
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Loise
9 months ago
D) US treasury bonds
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Madalyn
10 months ago
C) US treasury notes
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Samira
11 months ago
B) US treasury bills
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Mila
11 months ago
A) Series EE bonds
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Sueann
11 months ago
I disagree. Bubba cannot use US treasury bonds as collateral.
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Fausto
12 months ago
I agree with Linn. Series EE bonds are not eligible as collateral.
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Linn
12 months ago
I think Bubba cannot use Series EE bonds as collateral.
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