Finra Exam Series-7 Topic 5 Question 30 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 30
Topic #: 5

Bubba purchases 100 shares of XYZ at 78 and, on the same day, writes 1 XYZ October 80 call for a premium of 4. If the option expires unexercised, what is Bubba's profit on the 100 shares of stock?

A$200

B$400

C$600

Dcannot be determined

Show Suggested Answer

Suggested Answer: D

cannot be determined. Since Bubba has not yet sold the stock, a profit cannot be determined on the stock. He has a $400 profit on the option.

by Marti at May 03, 2022, 06:11 AM

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