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SOFE SOFA-CFE Exam - Topic 8 Question 107 Discussion

An option to buy a particular stock at a fixed price within a stated period of time is known as:
C) hedge
A) put
B) call
D) Capital gain

SOFE SOFA-CFE Exam - Topic 8 Question 107 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 107
Topic #: 8
[All SOFA-CFE Questions]

An option to buy a particular stock at a fixed price within a stated period of time is known as:

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Suggested Answer: C

by Goldie at Feb 09, 2025, 09:58 AM

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Latricia
7 months ago
Really? I thought it was more complicated than that.
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Thea
8 months ago
Nope, a put is for selling, not buying.
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Gene
8 months ago
Wait, isn't a put option also a buying option?
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Francoise
8 months ago
Totally agree, it's a call.
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Malcolm
8 months ago
That's definitely a call option!
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Kenneth
9 months ago
I definitely recall that a call option is about buying, but I’m second-guessing myself. What if it’s a trick question?
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Dalene
9 months ago
I’m a bit confused. I know a put is the opposite of a call, but I can’t remember which one is which.
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Tatum
9 months ago
I feel like I’ve seen a question like this before. A call option gives you the right to buy, right? So I’m leaning towards B.
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Bettina
9 months ago
I think the answer is "call," but I’m not completely sure. I remember studying options, and it seems like that fits the description.
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Taryn
9 months ago
This is a classic options question. The key is remembering that a call option gives you the right to buy the stock, while a put option gives you the right to sell. So the answer here is definitely B - call.
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Leontine
9 months ago
I'm a bit confused by the wording of this question. Is a "call" the same as a "put"? I'll have to review my notes on options trading to make sure I have the right terminology down.
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Leslie
9 months ago
Okay, I've got this. A call option gives you the right to buy a stock at a fixed price within a certain time period. That's exactly what the question is asking about, so the answer has to be B - call.
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Reta
9 months ago
Hmm, I'm a little unsure about this one. I know options have to do with buying and selling stocks, but I can't quite remember the difference between a put and a call. I'll have to think this through carefully.
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Simona
9 months ago
This one seems pretty straightforward. I'm pretty sure the answer is B - call.
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Lajuana
1 year ago
I'm gonna go with B) call. Ain't my first rodeo when it comes to options trading, you know?
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Francene
1 year ago
Wilford: It's a popular strategy for investors looking to profit from a stock's potential upside.
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Wilford
1 year ago
User 2: I agree, calls give you the right to buy a stock at a fixed price.
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Emmett
1 year ago
User 1: Good choice, B) call is the correct answer.
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Jenelle
1 year ago
B) call, no doubt about it. I'm gonna ace this exam, just you wait!
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Pearline
1 year ago
I agree, D) Capital gain is more about the profit made from selling an investment at a higher price than what was paid for it.
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Merlyn
1 year ago
C) hedge could also be a good strategy to minimize risk in the stock market.
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Merilyn
1 year ago
I'm not sure, but I think A) put is also an option to consider for protecting against a stock's decrease in price.
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Kristine
1 year ago
I think it's B) call too, it's a great way to potentially profit from a stock's increase in price.
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Cassie
1 year ago
D) Capital gain? Really? That's not even close to the right answer. Gotta love these multiple-choice exams, they keep you on your toes!
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Jeannetta
1 year ago
Ah, a classic options question! B) call is the way to go, I'm confident about that one.
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Malcolm
1 year ago
Hmm, this one's a bit tricky. I'm leaning towards B) call, but I'll have to double-check the definitions just to be sure.
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Wilda
1 year ago
I'm pretty sure it's B) call as well. Let's confirm.
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Loren
1 year ago
I think it's B) call too, but let's make sure.
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Richelle
1 year ago
I'm not sure, but I think it's either A) put or B) call.
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Tiffiny
1 year ago
I agree with Johnson, a call option allows you to buy a stock at a fixed price.
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Johnson
1 year ago
I think the answer is B) call.
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