New Year Sale ! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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?

Show Suggested Answer Hide 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
Rueben
11 days ago
Aw, shucks, I ain't got a clue. Maybe it's some kind of voodoo magic the Wall Street folks use to confuse us simple folk. I'll just go with C, 'cause that's my lucky number.
upvoted 0 times
...
Alayna
23 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
Josephine
7 days ago
A) calendar spread
upvoted 0 times
...
...
Carma
26 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
28 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
Reed
6 days ago
User 3: Yeah, that makes sense. It's called a combination spread.
upvoted 0 times
...
Natalie
13 days ago
User 2: So maybe it's a combination then, since Bubba is buying and selling options at the same time.
upvoted 0 times
...
Chandra
16 days ago
User 1: It's not a money spread, that involves buying and selling options at different strike prices.
upvoted 0 times
...
...
Kenneth
29 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
1 months 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
Lashon
6 days ago
Oh, I see. Thanks for clarifying. So it's a combination then.
upvoted 0 times
...
Fairy
12 days ago
The correct answer is D) combination. It involves buying and selling options with different strike prices.
upvoted 0 times
...
Rebbecca
13 days ago
No, it's not a straddle. A straddle involves buying a call and a put at the same strike price.
upvoted 0 times
...
Vesta
20 days ago
Yes, you're correct! A straddle involves buying and selling the same stock at different strike prices.
upvoted 0 times
...
...
Silvana
1 months 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
1 months ago
I think the answer is A) calendar spread.
upvoted 0 times
...
Lonna
1 months 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
Jesusa
4 days ago
That's right, it's a combination position.
upvoted 0 times
...
Tiera
5 days ago
I think it's a calendar spread.
upvoted 0 times
...
Timothy
13 days ago
D) combination
upvoted 0 times
...
Stephen
1 months ago
A) calendar spread
upvoted 0 times
...
...

Save Cancel