Finra Exam Series-7 Topic 4 Question 99 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 99
Topic #: 4

[All Series-7 Questions]

Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed:

100 ABC $30

200 XYZ $70

200 QBB $40

200 KKK $25

Total market value = $30,000

Debit balance in the account = $12,000

Net equity balance of the account = $18,000

If Bubba wants to buy 100 shares of DUM at $30 per share, how much additional money must be deposited?

A$3,000

B$1,500

C$2,000

D$0

Show Suggested Answer

Suggested Answer: D

$79. Bubba's breakeven is his cost of the stock less the premium he received ($83 - $4).

by Henriette at Sep 17, 2024, 08:30 PM

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7 days ago

I'm not sure, but I think the answer is C) $2,000 because the total market value is $30,000.

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10 days ago

I agree with Timothy, because Bubba needs to deposit 50% of the purchase price.

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15 days ago

I think the answer is A) $3,000.

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