Series 7 - General Securities Representative Exam

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

A trader buys 500 shares of ABC stock at $50 a share and buys 5 ABC 45 puts @ 5.00 to hedge his position. What is the trader's maximum profit?

$45 a share

A

$2,500

B

unlimited

C

$5,000

D