Finra Exam Series-7 Topic 6 Question 103 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 103
Topic #: 6

[All Series-7 Questions]

Bubba buys one XYZ October 80 put and sells one XYZ October 70 put.

What is his position called?

Acalendar spread

Bmoney spread

Cstraddle

Dcombination

Show Suggested Answer

Suggested Answer: B

money spread. Since the strike prices are different, but not the expiration date, this is a money spread (sometimes called a ''price spread'' or a ''vertical spread'').

by Tarra at Nov 14, 2024, 12:26 AM

Limited Time Offer

25%

Off

Get Premium Series-7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Alayna

9 days ago

Heck, I reckon it's gotta be a calendar spread. You know, when you buy and sell options with different expiration dates. I remember that from my Futures and Options 101 class at the local community college.

upvoted 0 times

...

Carma

12 days ago

Hold up, y'all. Ain't this here a combination trade? That's where you buy and sell different options on the same stock, ain't it?

upvoted 0 times

...

Rosalyn

14 days ago

Shucks, this one's tougher than a two-dollar steak. Maybe it's a money spread? That sounds like something I'd do to make a quick buck.

upvoted 0 times

Chandra

2 days ago

User 1: It's not a money spread, that involves buying and selling options at different strike prices.

upvoted 0 times

...

Kenneth

15 days ago

I'm not sure, but I think it could also be D) combination since it involves both buying and selling options.

upvoted 0 times

...

Curtis

17 days ago

Hmm, let me think about this... Is it a straddle? I reckon that's the one where you buy and sell the same stock at different prices, right?

upvoted 0 times

Vesta

6 days ago

Yes, you're correct! A straddle involves buying and selling the same stock at different strike prices.

upvoted 0 times

...

Silvana

18 days ago

I agree with Georgene, because Bubba is buying one put option and selling another with different strike prices and expiration dates.

upvoted 0 times

...

Georgene

20 days ago

I think the answer is A) calendar spread.

upvoted 0 times

...

Lonna

25 days ago

Ain't no way I'm gonna get this one wrong, y'all. I've been trading options since I was in diapers.

upvoted 0 times

Stephen

19 days ago

A) calendar spread

upvoted 0 times

...