Series 65 Exam Lesson 37 Quiz options pt. 4
This is a Series 65 Exam Lesson 34 Options pt 1: a free quiz for Series 65 Exam Lesson 34 Quiz which is covering Options part 1 . Try it and see how you do if you need help listen the lesson over.
Series 65 Exam Lesson 37 Quiz options pt. 4
Series 65 Exam Lesson 37 Quiz options pt. 4 covering more option strategies you need to understand for the Series 7 Exam
Below are questions based on the lesson 37 of the series. Choose the letter of the correct answer.
Series 65 Exam Lesson 37 Quiz options pt. 4
1. It is a strategy of buying a put and a call with the same expiration date and the same strike price on the same company.
A. combination
B. protective put
C. spread
D. straddle
2. The last trading day of options is ___.
A. the date of the option’s expiration
B. the date of the option’s expiration minus two business days
C. the last business day of the expiration month
D. the last trade day before the expiration date
3. Options expire on ___.
A. the first Friday of the expiration month
B. the second Friday of the expiration month
C. the third Friday of the expiration month
D. the last Friday of the expiration month
4. It is a type of straddle wherein you sell the straddle.
A. butterfly straddle
B. condor straddle
C. long straddle
D. short straddle
5. The cost of a straddle is equal to ___.
A. the price determined by the seller of the straddle
B. the strike price divided by the beta
C. the sum of the intrinsic values of the call option and the put option
D. the sum of the premiums of the call option and the put option
6. The risk in a long straddle is ___.
A. the breakeven on the downside
B. the difference between the premiums of the call option and the put option
C. the premium of either the call option or the put option, whichever is higher
D. the total premium you paid for both of the options included in the straddle
7. The profit in a short straddle is ___.
A. limited to the downside by the total price of the stock minus the premium you collect
B. limited to the premium you collect
C. limited to the upside by the total price of the stock plus the premium you collect
D. unlimited to the movement of the price of the stock
8. The breakeven for a short straddle is the same as the breakeven for a long straddle.
A. True
B. False
9. In long straddles, the breakeven on the upside is where ___.
A. the new stock price rises above the initial stock price plus the premium of the call option
B. the new stock price rises above the initial stock price plus the total premium of the call and put option
C. the strike price rises above the initial stock price plus the premium of the call option
D. the price of the stock rises above the strike price enough to cover the premiums paid for the put and call options
10. In long straddles, the breakeven on the downside is where ___.
A. the new stock price falls below the initial stock price minus the premium of the put option
B. the new stock price rises above the initial stock price plus the total premium of the call and put option
C. the price of the stock falls below the strike price enough to cover the premiums paid for the put and call options
D. the strike price rises above the initial stock price plus the total premium of the call option and put option
11. In a long straddle, you make profit as long as the stock moved outside the breakeven on the upside and the breakeven on the downside.
A. True
B. False
12. In a short straddle, you lose money when the stock stays within the breakeven on the upside and the breakeven on the downside.
A. True
B. False
13. If you’re looking at buying a straddle, you’re looking for volatility; if you’re looking to sell a short straddle, you’re looking for stability.
A. True
B. False
14. In theory, a stock with a high beta should have lower option prices than a stock with a low beta.
A. True
B. False
15. A stock’s price is $35. The strike price is $30, the call premium is $5.50, and the put premium is $1. What is the breakeven on the upside?
A. $34.50
B. $36.50
C. $39.50
D. $40.50
16. A stock’s price is $80. The strike price is $78, the call premium is $5, and the put premium is $3. What is the breakeven on the downside?
A. $70
B. $72
C. $73
D. $77
17. A stock has a price of $65. The beta is 0.89. The strike price is $63. The call premium is $3 and the put premium is $2. Assuming the stock move with its beta, the market must go up
to ___ to breakeven on this option.
A. 3%
B. 3.37%
C. 4.62%
D. 5.19%
18. A stock has a price of $15. The beta is 1.7. The strike price is $14. The call premium is $2 and the put premium is $1.50. Assuming the stock moves with its beta, the market must go down to ___ to breakeven on this option.
A. 4.5%
B. 14.71%
C. 17.65%
D. 30%
19. You bought a long straddle. The stock price is $55 while the strike price is $53. The call premium is $4.75 while the put premium is $2. If the stock went up to $58, which of the following is true?
A. You would gain profit by collecting the premium.
B. You would gain profit by exercising your call option.
C. You would gain profit by exercising your put option.
D. You would not gain profit because the option is not above the breakeven point.
20. You sold a short straddle. The stock price is $16 while the strike price is $15. The call premium is $1.60 while the put premium is $1.50. If the stock went down to $10, what will be your gain/loss?
A. You would gain $3.10 from collecting the premium. The option would not be exercised because it is out of the money.
B. You would gain $5 by selling the stock.
C. You would lose $1.90 if the put option is exercised.
D. You would lose $5 if the put option is exercised.
Series 65 vs Series 66 Exam
The Series 65 exam is designed for those who do not have a Series 7 license. The content of both exams are similar though the Series 65 will be more heavily concentrated on Investment products and economics (like you would need to learn for the SIE and Series 7 Exam). … The Series 66 exam has a little more State law (such as what you will find in the Series 63 Exam) and some esoteric investment products.
Our audio lessons for both the Series 65 and Series 66 cover the material you would need to learn for the SIE and Series 7 exam so it may be a little more than you need for the Series 66 but we want you to be fully prepared!
The only difference between the two series of exam lessons (the 65 and 66) is that the Series 66 exam also covers the material needed for the Series 63 exam.
Our other website s for FINRA and other certification Exams include:
https://www.series7podcast.com
https://www.series7podcast.com
https://insuranceexampodcast.com
https://insuranceexampodcast.com
https://www.reexampodcast.com/
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