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Finra Series-7 Exam - Topic 7 Question 70 Discussion

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

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

Suggested Answer: C

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


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12 comments · newest first
PA
Pansy 12 months ago
Really? I doubt they adjust for reverse splits.
ST
Steffanie 1 year ago
No way, I didn't know they don't adjust for cash dividends!
GA
Gayla 1 year ago
A is true, they adjust for dividends.
TE
Teri 1 year ago
I thought they adjusted for cash dividends too?
NA
Nada 1 year ago
They definitely adjust for stock splits.
SC
Scarlet 1 year ago
I definitely remember that stock dividends are adjusted, but I’m a bit confused about the cash dividends part.
OT
Otis 1 year 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.
IR
Irma 1 year ago
I remember practicing a question like this, and I think cash dividends might not lead to adjustments for options.
LO
Lonny 1 year ago
I think options are adjusted for stock splits and dividends, but I'm not sure about cash dividends.
DE
Denny 1 year ago
Ah, I know this topic well from our class discussions. I'm confident I can select the correct answer.
BR
Brandon 1 year 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.
MA
Martha 1 year 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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