Cyber Monday 2024! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Free Preparation Discussions
MENU
Finra Exam Series-7 Topic 7 Question 21 Discussion
Actual exam question for
Finra's
Series-7 exam
Question #: 21
Topic #: 7
[All Series-7 Questions]
Topic #: 7
Bubba buys one XYZ June 40 call for $1,000 and sells one XYZ March 40 call for $600. Subsequently, the June call is closed for $1,200 and the March call for $900.
What is Bubba's net result?
Suggested Answer:
A
$100 profit. The long position in the June call is a $200 profit ($1,200 - $1,000). The short position in the March call is a $300 loss ($900 - $300). Combining the gain and loss results in a $100 loss.
Currently there are no comments in this discussion, be the first to comment!