Series 7 - General Securities Representative Exam
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Walter Pinkman is an options trader. He has options positions in an underlying stock that has an upcoming dividend. Which of the following positions will allow Walter to receive the dividend if the option is exercised before the ex-dividend date?
Short Call Spread
A
Short Call
B
Long Put
C
Short Put
D
Explanations
The writer of the put can exercise the short put and have 100 shares of long stock at the strike price. This would entitle Walter to the dividend; if exercised before the ex-dividend date