Series 66 Exam Lesson 35 Quiz Options pt 2
This is a Series 66 Exam Lesson 35 Quiz Options pt 2: a free quiz for Series 66 Exam Lesson 34 Quiz which is covering Options part 1 . Try it and see how you do if you need help listen to the lesson over.
Series 66 Exam Lesson 35 Quiz Options pt 2
This is a Series 66 Exam Lesson 35 Quiz Options pt 2. Try it and see how you do if you need help listen to the lesson over.
Questions covered include
Below are questions based on lesson 35 of the series. Choose the letter of the correct answer.
Quiz Options Part 2
Below are questions based on the previous lesson. Choose the letter of the correct answer.
To take the quiz online, click here.
1. It is the cost of an option.
A. bid price
B. ask price
C. premium
D. strike price
2. The premium contains the option’s ___.
A. intrinsic value
B. time value
C. both intrinsic value and time value
D. neither intrinsic value nor time value
3. This refers to the number of options that are open for trading in the market.
A. bid
B. volatility
C. open interest
D. volume
4. This refers to the number of options that were sold or traded for the given day.
A. bid
B. volatility
C. open interest
D. volume
5. It refers to the amount of uncertainty or risk about the size of changes in a security’s value.
A. open interest
B. premium
C. volatility
D. volume
6. Parity is when the strike price and the stock are selling at exactly the same price.
A. True
B. False
7. An option is created by writing covered calls.
A. True
B. False
8. Writing a covered call ___.
A. decreases open interest
B. decreases volume
C. increases open interest
D. increases volume
9. If a person wrote an option (such as a covered call) and is now buying back the option, he is opening a position.
A. True
B. False
10. Person A writes a covered call option and Person B buys that option. Which of the following is true?
A. Person A sells to close and Person B buys to close.
B. Person A sells to close and Person B buys to open.
C. Person A sells to open and Person B buys to close.
D. Person A sells to open and Person B buys to open.
11. This is used in determining the theoretical value of an option.
A. Black-Scholes model
B. Fed model
C. Sharpe ratio
D. Sortino ratio
12. It serves as an insurance to your investment portfolio.
A. covered call
B. married put
C. naked call
D. put on a put
13. An option without intrinsic value always has no time value.
A. True
B. False
14. A naked put is written by a person who owns the stock.
A. True
B. False
15. A call option is offered on a stock. If the current price of the stock is $20 and the strike price is $15, what is the intrinsic value of the option?
A. $2.5
B. $5
C. $10
D. There is no intrinsic value in this option.
16. A call option is offered on a stock. If the current price of the stock is $12 and the strike price is $10, what is the premium of the option?
A. $1
B. $2
C. $11
D. The premium of the option cannot be computed from the given facts.
17. A call option is offered on a stock. The current price of the stock is $20 and the strike price is $15. The call option’s premium is $8. What is the time value of the option?
A. $2
B. $3
C. $4
D. There is no time value for this option.
18. An option is selling at $6 per share and the option is for 10 shares. If you bought the option for a bid price of $5.50 per share, how much will you pay for the option for 10 shares?
A. $5.50
B. $6
C. $55
D. $60
19. If the stock is currently selling at $30 a share and you write a covered call for $40 a share, there is ___.
A. $10 in the money option
B. $10 out of the money option
C. $30 in the money option
D. $40 out of the money option
20. You bought a married put with a strike price of $15. If the current price of the stock is $20, what is the intrinsic value of the option?
A. $2.5
B. $5
C. $10
D. There is no intrinsic value in this option.
We hope you did well on this Series 66 Exam Lesson 35 Quiz Options pt 2
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The Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The other possible exam would be the series 65 examination.
The Series 66 exam — the NASAA Uniform Combined State Law Examination — is a North American Securities Administrators Association (NASAA) exam administered by FINRA.
The exam consists of 100 scored questions. Candidates have 150 minutes to complete the exam. In order for a candidate to pass the Series 66 Exam, he/she must correctly answer at least 73 of the 100 scored questions.
There is no prerequisite for the Series 66 examination. However, the SIE and the Series 7 examination are co-requisites to the Series 66 Examination.
What is the Series 65 Exam?
The Series 65 is another path to becoming an Investment Advisor Representative (IAR)
Sometimes called the IAR in a box
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The NASAA, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
Again requisites for this exam are the SIE Exam and the Series 7 Exam Top Off
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 65.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 66 Exam Free Audio Lesson 13
Series 66 Exam Free Audio Lesson 13 is a lesson for the Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The Series 66 Exam consists of 100 questions. When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The Financial Industry Regulatory Authority, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 66.
The other possible exam path to become a IAR would be the series 65 examination.
What is the Series 65 Exam?
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
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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