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Finra Exam Series-7 Topic 5 Question 30 Discussion
Actual exam question for
Finra's
Series-7 exam
Question #: 30
Topic #: 5
[All Series-7 Questions]
Topic #: 5
Bubba purchases 100 shares of XYZ at 78 and, on the same day, writes 1 XYZ October 80 call for a premium of 4. If the option expires unexercised, what is Bubba's profit on the 100 shares of stock?
Suggested Answer:
D
cannot be determined. Since Bubba has not yet sold the stock, a profit cannot be determined on the stock. He has a $400 profit on the option.
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