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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

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Rueben
2 months 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.
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Helaine
1 months ago
I'll go with money spread, just to mix it up.
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Mabelle
2 months ago
I'm going with straddle, that sounds right.
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Helga
2 months ago
No, I believe it's a calendar spread.
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Kati
2 months ago
I think it's a combination.
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Alayna
3 months 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.
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Virgilio
1 months ago
No, it's not a combination. In a calendar spread, the options have different strike prices.
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Art
2 months ago
D) combination
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Naomi
2 months ago
That's right! A calendar spread involves buying and selling options with different expiration dates.
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Josephine
2 months ago
A) calendar spread
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Carma
3 months 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?
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Rosalyn
3 months 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.
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Reed
2 months ago
User 3: Yeah, that makes sense. It's called a combination spread.
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Natalie
2 months ago
User 2: So maybe it's a combination then, since Bubba is buying and selling options at the same time.
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Chandra
3 months ago
User 1: It's not a money spread, that involves buying and selling options at different strike prices.
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Kenneth
3 months ago
I'm not sure, but I think it could also be D) combination since it involves both buying and selling options.
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Curtis
3 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?
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Lashon
2 months ago
Oh, I see. Thanks for clarifying. So it's a combination then.
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Fairy
2 months ago
The correct answer is D) combination. It involves buying and selling options with different strike prices.
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Rebbecca
2 months ago
No, it's not a straddle. A straddle involves buying a call and a put at the same strike price.
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Vesta
3 months ago
Yes, you're correct! A straddle involves buying and selling the same stock at different strike prices.
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Silvana
3 months ago
I agree with Georgene, because Bubba is buying one put option and selling another with different strike prices and expiration dates.
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Georgene
3 months ago
I think the answer is A) calendar spread.
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Lonna
3 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.
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Jesusa
2 months ago
That's right, it's a combination position.
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Tiera
2 months ago
I think it's a calendar spread.
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Timothy
2 months ago
D) combination
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Stephen
3 months ago
A) calendar spread
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