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Finra Series-7 Exam - Topic 4 Question 29 Discussion

What is the loan value on a call option held in a customer's margin account?
A) 0
B) 50%
C) 30%
D) the compliment of the FRB initial margin requirement for listed stocks

Finra Series-7 Exam - Topic 4 Question 29 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 29
Topic #: 4
[All Series-7 Questions]

What is the loan value on a call option held in a customer's margin account?

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Suggested Answer: A

0. Options do not have loan value, except for long-term LEAPS.


by Sage at May 06, 2022, 03:46 PM

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Angelica
8 months ago
Definitely 50%, no doubt about it!
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Macy
9 months ago
I thought it was 30%, but I might be wrong.
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Noemi
9 months ago
Wait, isn't it based on the FRB margin requirement?
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Mirta
9 months ago
Totally agree, that's the standard rule.
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Avery
9 months ago
It's 50% for call options in margin accounts.
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Dick
9 months 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.
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Kirk
9 months 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.
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Bette
9 months 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.
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Ciara
9 months ago
I remember practicing a similar question, and I think the answer might be related to the FRB margin requirements. Could it be D?
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Stacey
9 months 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.
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Bernardine
10 months ago
Hmm, I'm a bit unsure about this one. I'll need to think it through carefully.
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