Finra Exam Series-7 Topic 6 Question 100 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 100
Topic #: 6

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

Show Suggested Answer

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).

by Nickie at Sep 18, 2024, 08:53 PM

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Zita

1 days ago

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

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Marvel

1 days 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?

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Roxane

4 days 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?

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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.

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Finra Exam Series-7 Topic 6 Question 100 Discussion

Contribute your Thoughts:

Zita

Marvel

Roxane

Lauryn