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SOFE Exam SOFA-CFE Topic 6 Question 71 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 71
Topic #: 6
[All SOFA-CFE Questions]

An option to sell a particular stock at a fixed price within a stated period of time is called:

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Suggested Answer: D

by Goldie at Jul 06, 2023, 12:22 AM

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Fannie
2 months ago
Wait, is the answer D) Capital gain? I mean, that's what we're all hoping for when we trade options, right? Haha, just kidding. I'm pretty sure it's B) call.
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Gilma
14 days ago
I'm going with D) Capital gain.
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Galen
16 days ago
Actually, I'm pretty sure it's C) hedge.
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Cathern
22 days ago
No, I believe it's B) call.
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Ettie
27 days ago
I think the answer is A) put.
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Goldie
2 months ago
Aw man, I totally blanked on this one. Is it C) hedge? I know that has something to do with options trading, but I can't recall the specifics.
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Deangelo
30 days ago
Don't worry, options trading can be confusing. Just keep practicing!
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Ora
1 months ago
The correct answer is A) put. It gives you the right to sell a stock at a fixed price.
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Noelia
2 months ago
No, it's not C) hedge. Think about the options carefully.
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Dottie
2 months ago
I think I remember learning about this in my finance class. The correct answer has to be B) call. That's the one where you have the right to buy the stock, right?
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Alpha
1 months ago
I remember now, C) hedge is a strategy to reduce risk by taking an offsetting position.
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Jin
1 months ago
Actually, the correct answer is B) call. It's the option to buy a particular stock at a fixed price within a stated period of time.
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Levi
1 months ago
Yes, you're correct! A) put is the option to sell a particular stock at a fixed price within a stated period of time.
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Ricki
3 months ago
Hmm, let's see... A put option, that's the one where you have the right to sell the stock, right? Looks like B) call is the odd one out here.
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Glen
1 months ago
So, the odd one out here is B) call. It doesn't involve selling the stock like the other options.
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Carissa
2 months ago
That's right. A call option is the opposite, it gives you the right to buy a stock at a fixed price within a stated period of time.
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Janine
2 months ago
Yes, you're correct. A put option gives you the right to sell a stock at a fixed price within a stated period of time.
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Gail
3 months ago
This one's a no-brainer! The answer is clearly A) put. Gotta love those options trading terms.
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Cecil
3 months ago
But a put option gives you the right to sell at a fixed price, while a call option gives you the right to buy at a fixed price.
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Mitzie
3 months ago
I disagree, I believe the correct answer is B) call.
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Cecil
3 months ago
I think the answer is A) put.
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Dana
3 months ago
I'm not sure, but I think it might be C) hedge because it helps manage risk.
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Shasta
3 months ago
I agree with Susana, a put option allows you to sell at a fixed price.
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Susana
3 months ago
I think the answer is A) put.
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