Series 7 - General Securities Representative Exam

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

A trader owns 7000 shares of BCDE corp. BCDE corp currently trades at $55 per share. The trader wants to earn income from this position but doesn't want to risk his whole position. He is willing to take a defined risk. Which strategy makes sense for this objective?

Buy 70 BCDE $50 puts

A

Sell 90 $60 BCDE calls

B

Sell 60 $60 BCDE calls

C

Sell 70 $40 BCDE puts

D