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Question 1 of 10
1. Question
Which of the following describe unit of underlying currency?
I. The case of a put, call, index stock group option, or stock index warrant with a remaining period to expiration exceeding nine months, no put, call, currency warrant, currency index warrant or stock index warrant carried for a customer shall be considered of any value for the purpose of computing the margin to be maintained in the account of such customer
II. The issuance, guarantee or sale (other than a “long” sale) for a customer of a put, a call, a currency warrant, a currency index warrant or a stock index warrant shall be considered a security transaction
III. Mortgage pass-through obligations guaranteed as to timely payment of principal and interest by the Government National Mortgage Association shall be referred to as GNMA obligations
IV. The index group value and the applicable index multiplier; U.S. Treasury bills, notes and bonds, the underlying principal amountCorrect
According to FINRA rule 4210 , the following describe unit of underlying currency:
(a) The case of a put, call, index stock group option, or stock index warrant with a remaining period to expiration exceeding nine months, no put, call, currency warrant, currency index warrant or stock index warrant carried for a customer shall be considered of any value for the purpose of computing the margin to be maintained in the account of such customer
(b) The issuance, guarantee or sale (other than a “long” sale) for a customer of a put, a call, a currency warrant, a currency index warrant or a stock index warrant shall be considered a security transaction
(c) Mortgage pass-through obligations guaranteed as to timely payment of principal and interest by the Government National Mortgage Association shall be referred to as GNMA obligationsIncorrect
According to FINRA rule 4210 , the following describe unit of underlying currency:
(a) The case of a put, call, index stock group option, or stock index warrant with a remaining period to expiration exceeding nine months, no put, call, currency warrant, currency index warrant or stock index warrant carried for a customer shall be considered of any value for the purpose of computing the margin to be maintained in the account of such customer
(b) The issuance, guarantee or sale (other than a “long” sale) for a customer of a put, a call, a currency warrant, a currency index warrant or a stock index warrant shall be considered a security transaction
(c) Mortgage pass-through obligations guaranteed as to timely payment of principal and interest by the Government National Mortgage Association shall be referred to as GNMA obligations -
Question 2 of 10
2. Question
Which of the following describes type option U.S. Treasury bonds?
I. 3.5 percent of Initial and/or Maintenance Margin Required
II. 1/20 percent of Minimum Margin Required
III. The underlying principle amount for Underlying Component Value
IV. 1/2 percent of Initial and/or Maintenance Margin RequiredCorrect
According to FINRA rule 4210, the following describes type option Broad index stock group:
(a) .35 percent of Initial and/or Maintenance Margin Required
(b) 1/20 percent of Minimum Margin Required
(c) The underlying principle amount for Underlying Component ValueIncorrect
According to FINRA rule 4210, the following describes type option Broad index stock group:
(a) .35 percent of Initial and/or Maintenance Margin Required
(b) 1/20 percent of Minimum Margin Required
(c) The underlying principle amount for Underlying Component Value -
Question 3 of 10
3. Question
Which of the following contracts under category (4) must be for a principal amount of not less than $500,000 is true in Stock Options ?
I. Any excess of the aggregate exercise price of the option over the current market value of the equivalent number of shares of the underlying security.
II. Any excess of the current market value of the equivalent number of shares of the underlying security over the aggregate exercise price of the option.
III. Any excess of the aggregate exercise price of the option over the current market value of the underlying principal amount.
IV. Any excess of the current market value of the underlying principal amount over the aggregate exercise price of the option.Correct
According to FINRA rule 4210, the following contracts under category (4) must be for a principal amount of not less than $500,000 is true in Stock Options:
(a) Any excess of the aggregate exercise price of the option over the current market value of the equivalent number of shares of the underlying security.
(b) Any excess of the current market value of the equivalent number of shares of the underlying security over the aggregate exercise price of the option.Incorrect
According to FINRA rule 4210, the following contracts under category (4) must be for a principal amount of not less than $500,000 is true in Stock Options:
(a) Any excess of the aggregate exercise price of the option over the current market value of the equivalent number of shares of the underlying security.
(b) Any excess of the current market value of the equivalent number of shares of the underlying security over the aggregate exercise price of the option. -
Question 4 of 10
4. Question
What is numerical index value mean when used in respect of a currency index warrant or stock index warrant?
Correct
According to FINRA rule 4120, index value mean when used in respect of a currency index warrant or stock index warrant is the level of a particular currency index or stock index as reported by the reporting authority for the index. While exercise settlement amount mean is the difference between the “aggregate exercise price” and the “aggregate current index value” (as such terms are defined in the pertinent By-Laws of The Options Clearing Corporation), exercise price mean in respect of an option or warrant contract is the stated price per unit at which the underlying security may be purchased (in the case of a call) or sold (in the case of a put) upon the exercise of such option contract, European-style option mean is an option contract that can be exercised only at its expiration pursuant to the rules of The Options Clearing Corporation
Incorrect
According to FINRA rule 4120, index value mean when used in respect of a currency index warrant or stock index warrant is the level of a particular currency index or stock index as reported by the reporting authority for the index. While exercise settlement amount mean is the difference between the “aggregate exercise price” and the “aggregate current index value” (as such terms are defined in the pertinent By-Laws of The Options Clearing Corporation), exercise price mean in respect of an option or warrant contract is the stated price per unit at which the underlying security may be purchased (in the case of a call) or sold (in the case of a put) upon the exercise of such option contract, European-style option mean is an option contract that can be exercised only at its expiration pursuant to the rules of The Options Clearing Corporation
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Question 5 of 10
5. Question
What is reporting authority mean when used in respect of a currency index warrant or a stock index warrant?
Correct
According to FINRA rule 4120, reporting authority mean when used in respect of a currency index warrant or a stock index warrant is the institution or reporting service specified in the prospectus as the official source for calculating and reporting the level of such currency index or stock index. While exercise settlement amount mean is the difference between the “aggregate exercise price” and the “aggregate current index value” (as such terms are defined in the pertinent By-Laws of The Options Clearing Corporation), exercise price mean in respect of an option or warrant contract is the stated price per unit at which the underlying security may be purchased (in the case of a call) or sold (in the case of a put) upon the exercise of such option contract, European-style option mean is an option contract that can be exercised only at its expiration pursuant to the rules of The Options Clearing Corporation
Incorrect
According to FINRA rule 4120, reporting authority mean when used in respect of a currency index warrant or a stock index warrant is the institution or reporting service specified in the prospectus as the official source for calculating and reporting the level of such currency index or stock index. While exercise settlement amount mean is the difference between the “aggregate exercise price” and the “aggregate current index value” (as such terms are defined in the pertinent By-Laws of The Options Clearing Corporation), exercise price mean in respect of an option or warrant contract is the stated price per unit at which the underlying security may be purchased (in the case of a call) or sold (in the case of a put) upon the exercise of such option contract, European-style option mean is an option contract that can be exercised only at its expiration pursuant to the rules of The Options Clearing Corporation
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Question 6 of 10
6. Question
Which of the following requirement may reflect the amount of margin may be the margin on the put or call, whichever is greater, as required pursuant?
I. A currency call warrant position is carried “short” for a customer account and is offset by a “short” currency put warrant and/or currency put option position
II. A currency put warrant position is carried “short” for a customer account and is offset by a “short” currency call warrant and/or currency put option position
III. A currency index call warrant position is carried “short” for a customer account and is offset by a “short” currency index put warrant and/or currency put option position
IV. A currency index put warrant position is carried “short” for a customer account and is offset by a “short” currency index call warrant and/or currency index call option positionCorrect
According to FINRA rule 4210, the following requirement may reflect the the amount of margin may be the margin on the put or call, whichever is greater, as required pursuant?
(a) A currency call warrant position is carried “short” for a customer account and is offset by a “short” currency put warrant and/or currency put option position
(b) A currency put warrant position is carried “short” for a customer account and is offset by a “short” currency call warrant and/or currency put option position
(c) A currency index call warrant position is carried “short” for a customer account and is offset by a “short” currency index put warrant and/or currency put option position
(d) A currency index put warrant position is carried “short” for a customer account and is offset by a “short” currency index call warrant and/or currency index call option positionIncorrect
According to FINRA rule 4210, the following requirement may reflect the the amount of margin may be the margin on the put or call, whichever is greater, as required pursuant?
(a) A currency call warrant position is carried “short” for a customer account and is offset by a “short” currency put warrant and/or currency put option position
(b) A currency put warrant position is carried “short” for a customer account and is offset by a “short” currency call warrant and/or currency put option position
(c) A currency index call warrant position is carried “short” for a customer account and is offset by a “short” currency index put warrant and/or currency put option position
(d) A currency index put warrant position is carried “short” for a customer account and is offset by a “short” currency index call warrant and/or currency index call option position -
Question 7 of 10
7. Question
What is stock index warrant mean
Correct
According FINRA rule 4210 stock index warrant mean is While exercise settlement amount mean is the difference between the “aggregate exercise price” and the “aggregate current index value” (as such terms are defined in the pertinent By-Laws of The Options Clearing Corporation), the term “index currency group” means a group of currencies whose inclusion and relative representation in the group is determined by the inclusion and relative representation of the current market prices of the currencies in a currency index and European-style option mean is an option contract that can be exercised only at its expiration pursuant to the rules of The Options Clearing Corporation
Incorrect
According FINRA rule 4210 stock index warrant mean is While exercise settlement amount mean is the difference between the “aggregate exercise price” and the “aggregate current index value” (as such terms are defined in the pertinent By-Laws of The Options Clearing Corporation), the term “index currency group” means a group of currencies whose inclusion and relative representation in the group is determined by the inclusion and relative representation of the current market prices of the currencies in a currency index and European-style option mean is an option contract that can be exercised only at its expiration pursuant to the rules of The Options Clearing Corporation
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Question 8 of 10
8. Question
How many percent need for Initial and/or Maintenance Margin Required in type option Stock Index Warrant on Broad Index Stock Group ?
Correct
According to FINRA rule 4210 it needs 15 percent for Initial and/or Maintenance Margin Required in type option Stock Index Warrant on Broad Index Stock Group.
Incorrect
According to FINRA rule 4210 it needs 15 percent for Initial and/or Maintenance Margin Required in type option Stock Index Warrant on Broad Index Stock Group.
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Question 9 of 10
9. Question
Who will be delegated to be given against an escrow agreement in a manner acceptable to FINRA?
Correct
According to FINRA rule 4210, Third party custodian bank or trust company will be delegated to be given against an escrow agreement in a manner acceptable to FINRA.
Incorrect
According to FINRA rule 4210, Third party custodian bank or trust company will be delegated to be given against an escrow agreement in a manner acceptable to FINRA.
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Question 10 of 10
10. Question
Which of the following describes Collars?
I. Carried with a “long” put or warrant specifying equivalent units of the same underlying component and having a lower exercise price and the same expiration date as the “short” call/warrant
II. The minimum amount of margin that must be maintained for the underlying component shall be the lesser of 10 percent of the aggregate exercise price of the put plus the put “out-of-the-money” amount or 25 percent of the call aggregate exercise price
III. The minimum amount of margin that must be maintained for the underlying component
IV. Shall be 10 percent of the aggregate exercise price plus the amount by which the exercise price of the put exceeds the current market value of the underlyingCorrect
According to FINRA rule 4210, the following describes Collars:
I. Carried with a “long” put or warrant specifying equivalent units of the same underlying component and having a lower exercise price and the same expiration date as the “short” call/warrant
II. The minimum amount of margin that must be maintained for the underlying component shall be the lesser of 10 percent of the aggregate exercise price of the put plus the put “out-of-the-money” amount or 25 percent of the call aggregate exercise priceIncorrect
According to FINRA rule 4210, the following describes Collars:
I. Carried with a “long” put or warrant specifying equivalent units of the same underlying component and having a lower exercise price and the same expiration date as the “short” call/warrant
II. The minimum amount of margin that must be maintained for the underlying component shall be the lesser of 10 percent of the aggregate exercise price of the put plus the put “out-of-the-money” amount or 25 percent of the call aggregate exercise price