Podcast: Play in new window | Download (Duration: 10:43 — 4.4MB)
Subscribe: Apple Podcasts | RSS | Subscribe to Podcast
SIE Exam Lesson 11 Options pt 1 Quiz
SIE Exam Lesson 11 Options pt 1 Quiz
This is a SIE Exam Lesson 11 Quiz options pt.1which is covering options pt. 1 basic option terminology of call and put options See how you do if you need help listen to the lesson over.
Questions covered include
Below are questions based on the previous lesson. Choose the letter of the correct answer.
To take the quiz online, click here.
Quiz Options Part 1
1. The oldest recorded option was about _____ getting options on the use of olive presses for a small price and charging olive growers exorbitant price for the use of those olive presses.
A. Nassim Taleb
B. Parmenides of Elea
C. Pythagoras
D. Thales of Miletus
2. It gives the holder or buyer of the option the right to purchase a specific number of shares of stock.
A. call option
B. order option
C. purchase option
D. put option
3. All of the following are needed in evaluating the value of an option EXCEPT ___.
A. expiration date of the option
B. interest rate
C. stock price
D. strike price
4. The premium is the price paid for an option.
A. True
B. False
5. Brokerage firms require same-day settlement on the options that are bought from them.
A. True
B. False
6. In a call option, it is the price at which the stock can be bought.
A. option price
B. option rate
C. stock price
D. strike price
7. Which of the following makes a call option valuable?
A. when the stock price is greater than the strike price after the expiration of the option
B. when the stock price is greater than the strike price before the expiration of the option
C. when the strike price is greater than the stock price after the expiration of the option
D. when the strike price is greater than the stock price before the expiration of the option
8. The more time you have on the option, the more expensive the option becomes.
A. True
B. False
9. In the “in the money option”, the strike price is above the current stock price.
A. True
B. False
10. It is the difference between the strike price and the current stock price when the strike price is lower than the current stock price.
A. absolute value
B. intrinsic value
C. option value
D. par value
SIE Exam Lesson 11 Options pt 1: Cont
11. If the stock price increases before the option expires, the intrinsic value of the option ___.
A. decreases
B. increases
C. remains constant
D. There is no direct relationship between the stock price and the intrinsic value of the option.
12. It is the price paid over the intrinsic value for the time period of the option.
A. premium value
B. premium intrinsic value
C. settlement value
D. time value
13. When the time value of the option declines to zero, what is left to the option at the time of expiration is its ___.
A. intrinsic value
B. par value
C. strike value
D. The time value will never decline to zero.
14. It is the right to sell the stock at a specific price.
A. call feature
B. call option
C. put feature
D. put option
15. In a put option, it is the price at which the stock can be sold.
A. option price
B. option rate
C. stock price
D. strike price
16. If the current price of the stock in the market is $60 and it was offered in a call option at a strike price is $50, what is the intrinsic value of the option?
A. $10
B. $110
C. $5
D. $55
17. An option that has expired loses its intrinsic value.
A. True
B. False
18. If you bought a call option at a premium of $18 to buy a stock at $50 that is now selling in the market at $60, how much did you pay for the time value?
A. $10
B. $18
C. $8
D. $9
19. If the current price of the stock in the market is $60 and the strike price is $50 in a put option, what is the intrinsic value of the put option?
A. $5
B. $10
C. $55
D. The put option has no intrinsic value.
20. What value does an out of the money put option has?
A. intrinsic value only
B. time value only
C. both intrinsic value and time value
D. neither intrinsic value nor time value
We hope you did well on this SIE Exam Lesson 11 Options pt 1 Quiz
Total Course 37 hours 10 Min
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
The full course details:
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
New Series 7 Exam and SIE Exam details.
All candidates now must now pass both the SIE exam (securities industry essentials exam) as well as the New Top-Off Series 7 Exam. A Series 7 candidate must also have an industry sponsor in order to take the examination to take the SIE Exam the candidate simply needs to be 18 years old and no broker affiliation is needed..
https://www.finra.org/industry/essentials-exam
- “Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
New Series 7 Exam
The New Series 7 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the four main job functions of a general securities representative. The table below lists the allocation of exam questions for each main job function.
Major Job Functions Percentage of Test Questions Number of Test Questions
(F1) Seeks Business for the Broker-Dealer from Customers and Potential Customers 7% 9
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 9% 11
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 73% 91
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 11% 14
TOTAL 100% 125”
The five job functions of the new Series 7 General Securities Representative Exam will be:
“Seeks business for the broker-dealer through customers and potential customers”
“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”
“Opens accounts, transfers assets and maintains appropriate account records”
“Provides customers with information on investments and makes suitable recommendations”
“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”
These five functions of the new series 7 exam are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”
https://www.finra.org/industry/series7
Here is a link to the table of Contents
Here is what my customers say about my audio lessons
Testimonials
—————————
New Series 7 Exam and SIE Exam details.
FINRA has announced major changes to the Series 7 Exam effective October 1, 2018. With the introduction of the Securities Industries Essentials Exam (SIE Exam) the new series 7 has been pared down to 125 questions from its original 250 questions.
https://www.finra.org/industry/series7
However there is now a prerequisite before taking the new Series 7 Exam all candidates now must have passed the SIE exam (securities industry essentials exam). In addition thing a series 7 candidate must also have an industry sponsor in order to take the examination.
https://www.finra.org/industry/essentials-exam
“Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
Outline of SIE Exam:
https://www.finra.org/sites/default/files/SIE%20Outline-01.12.18.pdf
https://www.finra.org/industry/series7
https://www.finra.org/sites/default/files/Series_7_Content_Outline.pdf