Finra Exam Series-7 Topic 4 Question 13 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 13
Topic #: 4

When does a call option provide the most value to its holder?

Awhen the underlying stock is extremely volatile

Bin the month prior to its expiration

Cwhen there is a large open interest in that class of option

Dwhen the underlying stock price is rising

Show Suggested Answer

Suggested Answer: D

when the underlying stock price is rising. That's why the holder of this option wants to have a right to ''call'' the stock.

by Tyra at May 04, 2022, 03:27 AM

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