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Question 1 of 10
1. Question
What is qualified security mean?
Correct
According to FINRA rule 4210 the qualified security is an equity security, other than a warrant, right or option, that is registered on any national securities exchange. Not option contract that can be exercised at any time prior to its expiration pursuant to the rules of The Options Clearing Corporation, any debt securities issued or guaranteed by the government of a foreign country or a supranational entity and thehe percent discount from principal amount at which the Treasury bill may be purchased or sold, expressed as a discount for a term to maturity of 360 days
Incorrect
According to FINRA rule 4210 the qualified security is an equity security, other than a warrant, right or option, that is registered on any national securities exchange. Not option contract that can be exercised at any time prior to its expiration pursuant to the rules of The Options Clearing Corporation, any debt securities issued or guaranteed by the government of a foreign country or a supranational entity and thehe percent discount from principal amount at which the Treasury bill may be purchased or sold, expressed as a discount for a term to maturity of 360 days
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Question 2 of 10
2. Question
Which of the following contracts under category (4) must be for a principal amount of not less than $500,000 is true in Index stock group options?
I. Any excess of the product of the index group value and the applicable multiplier over the aggregate exercise price of the option.
II. Any excess of the aggregate exercise price of the option over the product of the index group value and the applicable multiplier.
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 Index stock group options:
(a) Any excess of the product of the index group value and the applicable multiplier over the aggregate exercise price of the option.
(b) Any excess of the aggregate exercise price of the option over the product of the index group value and the applicable multiplier.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 Index stock group options:
(a) Any excess of the product of the index group value and the applicable multiplier over the aggregate exercise price of the option.
(b) Any excess of the aggregate exercise price of the option over the product of the index group value and the applicable multiplier. -
Question 3 of 10
3. Question
What will happen to the principal amount of $100,000 are listed or OTC and are carried “short” for a customer?
Correct
According to FINRA rule 4210, the principal amount of $100,000 are listed or OTC and are carried “short” for a customer will be the amount of margin required shall be the margin on the put or call, whichever is greater, as required pursuant
Incorrect
According to FINRA rule 4210, the principal amount of $100,000 are listed or OTC and are carried “short” for a customer will be the amount of margin required shall be the margin on the put or call, whichever is greater, as required pursuant
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Question 4 of 10
4. Question
Which of the following describe out-of-the-money amounts in Stock Options in Foreign Currency Options and Warrants?
I. Any excess of the aggregate exercise price of the option or warrant over the product of the index group value and the applicable multiplier.
II. Any excess of the product of the index group value and the applicable multiplier over the aggregate exercise price of the option or warrant.
III. Any excess of the aggregate exercise price of the option or warrant over the product of units per foreign currency contract and the closing spot prices.
IV. The product of units per foreign currency contract and the closing spot prices over the aggregate price of the option or warrant.Correct
According to FINRA rule 4210 the following describe out-of-the-money amounts in Stock Options in Index Stock Group Options, Currency Index Warrants, and Stock Index Warrants:
(a) Any excess of the aggregate exercise price of the option or warrant over the product of the index group value and the applicable multiplier.
(b) Any excess of the product of the index group value and the applicable multiplier over the aggregate exercise price of the option or warrant.Incorrect
According to FINRA rule 4210 the following describe out-of-the-money amounts in Stock Options in Index Stock Group Options, Currency Index Warrants, and Stock Index Warrants:
(a) Any excess of the aggregate exercise price of the option or warrant over the product of the index group value and the applicable multiplier.
(b) Any excess of the product of the index group value and the applicable multiplier over the aggregate exercise price of the option or warrant. -
Question 5 of 10
5. Question
How many percent need for the additional of the amount for “Long” OTC Option or Warrant With An Expiration Exceeding Nine Months?
Correct
According to FINRA rule 4210, aside from 75 percent amount option’s or warrant’s “in-the-money” they need 100 percent of amount for “Long” OTC Option or Warrant With An Expiration Exceeding Nine Months.
Incorrect
According to FINRA rule 4210, aside from 75 percent amount option’s or warrant’s “in-the-money” they need 100 percent of amount for “Long” OTC Option or Warrant With An Expiration Exceeding Nine Months.
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Question 6 of 10
6. Question
Which of the following describes type option U.S. Treasury bills — 95 days or less to maturity?
I. .35 percent of Initial and/or Maintenance Margin Required
II. 1/20 percent of Minimum Margin Required
III. The underlying principal 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 principal 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 principal amount for Underlying Component Value -
Question 7 of 10
7. Question
What is series (of options) mean?
Correct
According FINRA rule 4210 series (of options) mean is all option contracts of the same class of options having the same expiration date, exercise price and unit of trading. 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 series (of options) mean is all option contracts of the same class of options having the same expiration date, exercise price and unit of trading. 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
Which of the following describes type option Broad index stock group?
I. 15 percent of Initial and/or Maintenance Margin Required
II. 10 percent of Minimum Margin Required
III. The product of the index group value and the applicable index multiplier for Underlying Component Value
IV. 10 percent of Initial and/or Maintenance Margin RequiredCorrect
According to FINRA rule 4210, the following describes type option Broad index stock group:
(a) 15 percent of Initial and/or Maintenance Margin Required
(b) 10 percent of Minimum Margin Required
(c) The product of the index group value and the applicable index multiplierIncorrect
According to FINRA rule 4210, the following describes type option Broad index stock group:
(a) 15 percent of Initial and/or Maintenance Margin Required
(b) 10 percent of Minimum Margin Required
(c) The product of the index group value and the applicable index multiplier -
Question 9 of 10
9. Question
What is expiration date mean in respect of an option contract?
Correct
According to FINRA rule 4210, expiration date mean in respect of an option contract mean is the date and time fixed by the rules of The Options Clearing Corporation for the expiration of all option contracts covering the same underlying security or underlying index stock group and having the same expiration month as such option contract. 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 4210, expiration date mean in respect of an option contract mean is the date and time fixed by the rules of The Options Clearing Corporation for the expiration of all option contracts covering the same underlying security or underlying index stock group and having the same expiration month as such option contract. 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 10 of 10
10. Question
Which of the following describes the terms “call” and “put”?
I. As used in connection with a currency, currency index or stock index warrant mean a warrant structured as a “call” or “put” (as appropriate) on the underlying currency.
II. As used in connection with an option contract means an option under which the holder has the right, in accordance with the terms of the option, to purchase from (in the case of a call)
III. As used with reference to GNMAs means the prevailing price in the cash market for GNMAs
IV. As used in reference to an index option contract means the amount specified in the contract by which the index value is to be multiplied to arrive at the value required to be delivered to the holder of a call or by the holder of a put-upon valid exercise of the contractCorrect
According to FINRA rule 4210 the following describes term “call” and “put”:
(a) As used in connection with a currency, currency index or stock index warrant mean a warrant structured as a “call” or “put” (as appropriate) on the underlying currency.
(b) As used in connection with an option contract means an option under which the holder has the right, in accordance with the terms of the option, to purchase from (in the case of a call)Incorrect
According to FINRA rule 4210 the following describes term “call” and “put”:
(a) As used in connection with a currency, currency index or stock index warrant mean a warrant structured as a “call” or “put” (as appropriate) on the underlying currency.
(b) As used in connection with an option contract means an option under which the holder has the right, in accordance with the terms of the option, to purchase from (in the case of a call)