Discuss Finra Series-7 Exam Topic 6 Question 100

Bubba's order to purchase investment company shares must be executed at a price based upon the net asset value of the shares:

Anext computed after receipt of the order by the dealer

Blast computed before receipt of the order by the dealer

Ccomputed the previous day at the close of the NYSE

Dcomputed the same day the order is received by the dealer

Suggested Answer: D

0.7435. The put protects against a decline in the exchange rate for Canadian dollars. However, the cost of the put raises the breakeven point to 0.7435 (0.7400 + 0.0035).

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35 comments · newest first

Aja 11 months ago

A is correct, just read the rules!

Tamra 11 months ago

Wait, are you sure it's not D? That sounds right to me.

Chau 12 months ago

C seems outdated, who uses previous day’s close?

Vicky 12 months ago

I think it's B, last computed makes more sense.

Lisha 1 year ago

It's definitely A, that's how NAV works!

Candida 1 year ago

I’m a bit confused about the timing. Wasn’t there something about the NAV being computed at the close of the NYSE? That might relate to option C.

Britt 1 year ago

I feel like it might be option D since it says "computed the same day." That seems to make sense for timely execution.

Glen 1 year ago

I remember a practice question where it mentioned the last computed NAV before the order was received. Could that be option B?

Clement 1 year ago

I think the price is based on the net asset value computed after the order is received, but I'm not entirely sure.

Ty 1 year ago

I'm feeling pretty confident about this. The question is asking about when the net asset value is calculated, and based on my understanding, it's the next computed value after the order is received. Option A is the right answer.

Marleen 1 year ago

I'm a bit confused on this one. I'm not sure if the net asset value is computed next after the order, or the previous day. I'll need to double-check the details.

Tamala 1 year ago

Okay, let's see... I think the key here is understanding when the net asset value is computed. I'll need to review that concept.

Delbert 1 year ago

Hmm, this seems like a tricky one. I'll need to think through the timing of the net asset value calculation carefully.

Ocie 1 year ago

Alright, I've got this. The net asset value is computed next after the order is received by the dealer. Option A is the answer.

Carey 1 year ago

Bubba's going to need a bigger order to get a good deal on these investment shares. Maybe he should try the discount bin instead!

Myrtie 1 year ago

↳ replying to Carey

D) computed the same day the order is received by the dealer

Kenneth 1 year ago

↳ replying to Carey

Bubba should wait for the next computation to get a good price.

Judy 1 year ago

↳ replying to Carey

A) next computed after receipt of the order by the dealer

Eileen 2 years ago

This is a tough one. I'm torn between B and D. I guess I'll go with B, since it seems more logical to use the last computed price rather than waiting for a new one.

Harrison 1 year ago

↳ replying to Eileen

I see your point, but I still think D is the better choice in this scenario.

Ollie 1 year ago

↳ replying to Eileen

But wouldn't it be more accurate to use the last computed price before receiving the order?

Beckie 2 years ago

↳ replying to Eileen

I agree, it makes sense to use the most up-to-date information for the transaction.

Arminda 2 years ago

↳ replying to Eileen

I think it's D, the price should be computed the same day the order is received.

Salome 2 years ago

I'm not sure, but I think it makes sense for the price to be based on the most recent computation, so I agree with Penney.

Penney 2 years ago

I disagree, I believe the answer is D) computed the same day the order is received by the dealer.

Zita 2 years ago

I think the answer is B) last computed before receipt of the order by the dealer.

Marvel 2 years ago

Hmm, I'm not sure about this one. Maybe A) next computed after receipt of the order by the dealer? That would ensure the most up-to-date pricing, right?

Martina 1 year ago

↳ replying to Marvel

I agree, it would be best to have the price based on the most recent net asset value of the shares.

Maryanne 1 year ago

↳ replying to Marvel

I think you're right, A) next computed after receipt of the order by the dealer makes sense for accurate pricing.

Roxane 2 years ago

D) computed the same day the order is received by the dealer seems like the obvious choice to me. Why would they use a price that's not current?

Lauryn 2 years ago

I think the correct answer is B) last computed before receipt of the order by the dealer. It makes sense that the price should be based on the most recent net asset value, not something from the previous day or a future computation.

Fernanda 1 year ago

↳ replying to Lauryn

I see your point, but I still think it's A) next computed after receipt of the order.

Blossom 1 year ago

↳ replying to Lauryn

Actually, I believe it's B) last computed before receipt of the order by the dealer.

Annalee 1 year ago

↳ replying to Lauryn

I think it's A) next computed after receipt of the order by the dealer.

Johnetta 1 year ago

↳ replying to Lauryn

I agree, the price should be based on the most recent net asset value.

Finra Series-7 Exam - Topic 6 Question 100 Discussion