Series 7 - General Securities Representative Exam
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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
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- Course
- Questions
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- SIE
- 20 of 150
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- Series 6
- 30 of 500
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- Series 7
- 50 of 625