Series 7 - General Securities Representative Exam

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

Jimbob sold 100 shares of ABC stock short @ 71 and buys one ABC July 75 call @ 3. If ABC rises to 80 and Jimbob exercises the call, what is the gain or loss on his position?

$700 loss

A

$700 gain

B

$400 loss

C

$400 gain

D