MENU
What is the loan value on a call option held in a customer's margin account?
Suggested Answer: A
Get Premium Series-7 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
0. Options do not have loan value, except for long-term LEAPS.
11 comments · newest first
AN
Angelica
1 year ago
Definitely 50%, no doubt about it!
MA
Macy
1 year ago
I thought it was 30%, but I might be wrong.
NO
Noemi
1 year ago
Wait, isn't it based on the FRB margin requirement?
MI
Mirta
1 year ago
Totally agree, that's the standard rule.
AV
Avery
1 year ago
It's 50% for call options in margin accounts.
DI
Dick
1 year ago
I feel like I read that the loan value is based on the underlying stock's margin requirements, which might point to D being correct.
KI
Kirk
1 year ago
I’m a bit confused about the percentages. I thought it was 50% for some options, but I can't recall if that's for all or just specific cases.
BE
Bette
1 year ago
I think the loan value on a call option is 0, but I'm not entirely sure. It seems like options are treated differently than stocks.
CI
Ciara
1 year ago
I remember practicing a similar question, and I think the answer might be related to the FRB margin requirements. Could it be D?
ST
Stacey
1 year ago
Okay, let me see... I think the Modularlnputs channel might be the best place to look, since it's related to the input file where the new data is being added.
BE
Bernardine
1 year ago
Hmm, I'm a bit unsure about this one. I'll need to think it through carefully.