Series 7 - General Securities Representative Exam
Mary is in her 40's and earns a good living. Her time horizon is 25 years and she has a moderate risk tolerance. She already has a well balanced portfolio. She wants to get exposure to oil as she thinks the price is going up. What may be the most suitable recommendation for Mary?
Buy Oil Company StocksA
Buy Calls in Crude Oil ETF FundB
Buy Oil and Gas Exploration DPPC
Buy Shares in Oil Tracking ETF FundD
The most suitable choice is to buy shares in an oil tracking ETF fund. She wants exposure to the increase in crude oil price; which oil company stocks may not provide. The DPP is very risky and buying calls may be too risky for her