Series 7  General Securities Representative Exam
Preview Mode
An investor closed a short options trade out at a profit of 2.60. He initially collected 4.60 in premium by writing 2 calls and 1 put. If each call had a premium of 0.70, how much was the premium of the put?
2.00
A
3.20
B
0.60
C
5.20
D
Explanations
The amount of profit is irrelevant here. This is just a math question. He collected 4.60. 1.40 if it for the 2 calls (.70*2). Total premium collected was 4.60. 4.60  1.40 = 3.20. 3.20 is the premium he collected for the put.
Pricing
Basic
Part of the questions for each course

 Course
 Questions

 SIE
 20 of 150

 Series 6
 30 of 500

 Series 7
 50 of 625