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Finra Series-7 Exam - Topic 7 Question 70 Discussion

Which of the following statements is not true about exchange traded options?
C) they are adjusted for cash dividends
A) they are adjusted for stock dividends
B) they are adjusted for stock splits
D) they are adjusted for reverse splits

Finra Series-7 Exam - Topic 7 Question 70 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 70
Topic #: 7
[All Series-7 Questions]

Which of the following statements is not true about exchange traded options?

Show Suggested Answer Hide Answer
Suggested Answer: C

they are adjusted for cash dividends. This is the statement that is ''not'' true.


by Carey at May 24, 2023, 07:01 AM

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Pansy
8 months ago
Really? I doubt they adjust for reverse splits.
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Steffanie
8 months ago
No way, I didn't know they don't adjust for cash dividends!
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Gayla
9 months ago
A is true, they adjust for dividends.
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Teri
9 months ago
I thought they adjusted for cash dividends too?
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Nada
9 months ago
They definitely adjust for stock splits.
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Scarlet
9 months ago
I definitely remember that stock dividends are adjusted, but I’m a bit confused about the cash dividends part.
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Otis
9 months ago
I feel like all of these adjustments are important, but I can't recall if reverse splits are treated the same way as regular splits.
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Irma
9 months ago
I remember practicing a question like this, and I think cash dividends might not lead to adjustments for options.
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Lonny
9 months ago
I think options are adjusted for stock splits and dividends, but I'm not sure about cash dividends.
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Denny
9 months ago
Ah, I know this topic well from our class discussions. I'm confident I can select the correct answer.
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Brandon
9 months ago
I'm a bit confused on this one. I know the organization chart is important, but I'm not sure if that's the only document that graphically depicts the team and their relationships. I might need to review my notes to be sure.
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Martha
10 months ago
Hmm, this looks like a tricky one. I'll need to carefully consider the requirements for each site and how they might interact.
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