Finra Exam Series-7 Topic 4 Question 104 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 104
Topic #: 4

[All Series-7 Questions]

Bubba sells short 100 XYZ at $60 and makes the required Regulation T deposit of 50%. XYZ then rises I price to $65.

At this point what is the credit balance?

A$2,500

B$3,500

C$6,000

D$9,000

Show Suggested Answer

Suggested Answer: B

deductions from gross income to offset lower value of equipment. Depreciation is the deduction of costs for capital assets as their value declines.

by Rusty at Dec 09, 2024, 08:00 PM

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Brock

28 days ago

I wonder if Bubba's gonna treat himself to a nice steak dinner with his credit balance. Maybe even a little dessert, too!

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Teri

13 days ago

User 2: That's a nice chunk of change for a steak dinner!

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Ulysses

19 days ago

User 1: Bubba's credit balance is $3,500.

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Aaron

29 days ago

Alright, let's see... If Bubba shorted 100 shares at $60 and they rose to $65, that's gotta be at least $3,500. Gotta love those gains!

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Hoa

1 months ago

Hmm, $2,500 seems a bit low. I think Bubba's got a little more in the bank than that.

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Goldie

2 days ago

A) $2,500

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Julian

1 months ago

Woah, I'm really sweating this one. Gotta make sure I don't short-change myself on the credit balance!

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Alpha

2 months ago

I'm not sure, but based on the scenario, it seems like the credit balance should indeed be $3,500.

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Hana

2 months ago

I agree with Loise, because Bubba sold short 100 XYZ at $60 and made a 50% deposit, so the credit balance should be $3,500.

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Loise

2 months ago

I think the credit balance is $3,500.

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