Series 7 - General Securities Representative Exam
Preview Mode
Your new client is short 1,000 shares of PQRS stock. He feels strongly that it will decline in the future, but is concerned about a short term price spike from an earnings release. Which strategy do you suggest for your new client?
Buy 10 PQRS calls
A
Buy 1 PQRS call
B
Sell 10 PQRS puts
C
Sell 1 PQRS Call
D
Explanations
Each option contract covers 100 shares. He needs to buy 10 calls to hedge his 1000 share position.
Pricing
Basic
Part of the questions for each course
-
- Course
- Questions
-
- SIE
- 20 of 150
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- Series 6
- 30 of 500
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- Series 7
- 50 of 625