Finra Exam Series-7 Topic 6 Question 97 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 97
Topic #: 6

[All Series-7 Questions]

Which of the following statements is not true about exchange traded options?

Athey are adjusted for stock dividends

Bthey are adjusted for stock splits

Cthey are adjusted for cash dividends

Dthey are adjusted for reverse splits

Show Suggested Answer

Suggested Answer: C

they are adjusted for cash dividends. This is the statement that is ''not'' true.

by Alida at Sep 18, 2024, 10:01 PM

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Novella

4 months ago

Options adjusted for rLeonidarse splits? What is this, some kind of financial Twilight Zone? I'm going with D on this one.

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Yan

4 months ago

Haha, this question is making me hungry. I could go for some exchange-traded snacks right about now. Anyway, I think C is the answer.

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Leonida

4 months ago

Wait, are we sure options aren't adjusted for cash dividends? That seems like a pretty important thing to account for. I'm not so sure about this one.

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Annabelle

3 months ago

Oh, I see. Thanks for clarifying.

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Doyle

3 months ago

No, they are not adjusted for cash dividends.

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Vincenza

4 months ago

I think options are adjusted for cash dividends.

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Nana

5 months ago

Ah, this is a tricky one. I'm going to go with option A. Options are definitely adjusted for stock dividends, not cash dividends.

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Hillary

5 months ago

Hmm, I think option D is the one that's not true. Why would options be adjusted for reverse splits? That doesn't make much sense.

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Naomi

3 months ago

User 4: Option D is definitely the odd one out. It doesn't fit with the other statements about exchange traded options.

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Moon

4 months ago

I'm pretty sure options are adjusted for stock splits and dividends, but not for reverse splits.

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Giuseppe

4 months ago

I think option D is the odd one out here. It doesn't really fit with the others.

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Kiley

4 months ago

Maybe it's to maintain the value of the options after the split?

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Rex

4 months ago

I agree, option D doesn't seem right. Why would options be adjusted for reverse splits?

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Thomasena

4 months ago

Yeah, it doesn't make sense. I think option D is the one that's not true.

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Rodrigo

4 months ago

I agree, option D doesn't seem right. Why would options be adjusted for reverse splits?

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Joaquin

5 months ago

Hmm, I see your point. Let's review the options again.

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Katlyn

5 months ago

I disagree, I believe the correct answer is D) they are adjusted for reverse splits.

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Joaquin

5 months ago

I think the answer is C) they are adjusted for cash dividends.

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Margart

5 months ago

I'm pretty sure option C is the correct answer. Exchange traded options are not adjusted for cash dividends.

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Alida

4 months ago

Good to know. Thanks for clarifying that!

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Gabriele

5 months ago

Yes, option C is the correct answer. They are adjusted for stock dividends, stock splits, and reverse splits.

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Ernest

5 months ago

That makes sense. So, option C is the correct answer.

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Sanda

5 months ago

I think you're right. Exchange traded options are not adjusted for cash dividends.

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