Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy free practice questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Under Rule 2360, which of the following statement is true regarding basket’s weighting?
Correct
Under the term “conventional index option,” any contract option not issued by OCC overlaps a securities basket or index that does not satisfy a securities security account for more than 30% of the equity security component of the weighting of the basket or index.
Incorrect
Under the term “conventional index option,” any contract option not issued by OCC overlaps a securities basket or index that does not satisfy a securities security account for more than 30% of the equity security component of the weighting of the basket or index.
-
Question 2 of 10
2. Question
Each equity security comprising the index or basket is component security which index?
Correct
Each equity security comprising the basket or index is component security in Russell 3000 Index.
Incorrect
Each equity security comprising the basket or index is component security in Russell 3000 Index.
-
Question 3 of 10
3. Question
Under Rule 2360, what is the minimum amount of market capitalization of basket or index that is included by equity security?
Correct
The minimum amount of basket or index that has market capitalization is $75 million.
Incorrect
The minimum amount of basket or index that has market capitalization is $75 million.
-
Question 4 of 10
4. Question
Who does not issue the option contract as defined in conventional option in Rule 2360?
Correct
As defined by this term “conventional option” means:
(a) any option contract that The Options Clearing Corporation has not published or issued ; or
(b) an OCC Cleared OTC option.Incorrect
As defined by this term “conventional option” means:
(a) any option contract that The Options Clearing Corporation has not published or issued ; or
(b) an OCC Cleared OTC option. -
Question 5 of 10
5. Question
Under FINRA Rule 2360, “premium” means the aggregate price of the agreed option agreements between:
Correct
Premium
The word “premium” refers to the overall cost of the contract option agreed between the customer and the writer/seller or their agents.Incorrect
Premium
The word “premium” refers to the overall cost of the contract option agreed between the customer and the writer/seller or their agents. -
Question 6 of 10
6. Question
In Rule 2360, which of the following statement is true about Stock Options?
Correct
No member shall make an opening transaction on any exchange of any class of stock options in a stock option contract for an account if the member has reason to believe that, as a result of such a transaction, the member would be bound by an aggregate standardized equity option position exceeding the maximum position limit set by the exchange on which the option is traded.
Incorrect
No member shall make an opening transaction on any exchange of any class of stock options in a stock option contract for an account if the member has reason to believe that, as a result of such a transaction, the member would be bound by an aggregate standardized equity option position exceeding the maximum position limit set by the exchange on which the option is traded.
-
Question 7 of 10
7. Question
How many numbers of shares of securities are needed to hedge the option contracts, as written in FINRA Rule 2360?
Correct
Each option contract is hedge by 100 shares of securities.
Incorrect
Each option contract is hedge by 100 shares of securities.
-
Question 8 of 10
8. Question
By FINRA Rule 2360, who will FINRA notify to for request to exceed position limits?
Correct
FINRA will notify the SEC of a request to exceed the boundaries set at any moment it approves.
Incorrect
FINRA will notify the SEC of a request to exceed the boundaries set at any moment it approves.
-
Question 9 of 10
9. Question
Under FINRA Rule 2360, what is the minimum amount of established option contracts for a member to report a file of options positions to FIRNA?
Correct
A member must file the report to FINRA if it has established aggregate position of 200 or more option contracts.
Incorrect
A member must file the report to FINRA if it has established aggregate position of 200 or more option contracts.
-
Question 10 of 10
10. Question
Under Rule 2360, which of the following is true regarding transactions with issuers?
Correct
No member shall enter into a purchase (writing) transaction of a call option contract for the consideration of any corporation that is the issuer of its underlying security.
Incorrect
No member shall enter into a purchase (writing) transaction of a call option contract for the consideration of any corporation that is the issuer of its underlying security.