What are option questions?

Published by Charlie Davidson on

What are option questions?

Option questions can be single answer or multiple answers. The survey author can elect to allow ‘other’ responses, which on the device presents a free text field for entering any other response outside the preset options. Option questions will have frequency analysis performed on them in data analysis.

How much of the Series 7 is options?

The Series 7 top-off exam typically includes 10-15 options questions. That’s about 10% of the 125 questions that comprise the exam. While most options questions are straightforward, you can expect a handful to demand a higher level of options skill.

What are the basic option strategies?

10 Options Strategies to Know

  • Covered Call.
  • Married Put.
  • Bull Call Spread.
  • Bear Put Spread.
  • Protective Collar.
  • Long Straddle.
  • Long Strangle.
  • Long Call Butterfly Spread.

Are there a lot of options questions on the Series 7?

Although options contracts questions in the Series 7 exam are numerous, their scope is limited. Practicing as many options questions as possible can dramatically increase the chances of exam success.

What type of question is used to confirm?

Open questions give information; closed questions give confirmation. Open questions give information; closed questions give confirmation.

What is true or false test?

True-false tests contain statements that the student marks as being either true or false. In order to qualify as true, all parts of the statement must be true. In general, true-false tests check your knowledge of facts. Again, general study skills and best practices apply to studying for true-false tests.

What is the maximum loss on a call option?

The maximum loss on a covered call strategy is limited to the price paid for the asset, minus the option premium received. The maximum profit on a covered call strategy is limited to the strike price of the short call option, less the purchase price of the underlying stock, plus the premium received.

What is the most conservative option strategy?

Writing (selling) covered calls is the most conservative of options strategies. Recall that when an investor sells a call, they are obligated to deliver the stock at the strike price until the contract expires. If the investor owns the underlying stock, then they are “covered” and can deliver if exercised.

What are the four basic option strategies?

Since there are two types of options, puts and calls, and either one can be either purchased or written, we obtain a total of four basic option strategies: buy call, buy put, write call, and write put.

What is call put options examples?

For example, a stock option is for 100 shares of the underlying stock. Assume a trader buys one call option contract on ABC stock with a strike price of $25. He pays $150 for the option. The buyer/holder of the option exercises his right to purchase 100 shares of ABC at $25 a share (the option’s strike price).

What do you need to know about options?

Our focus here will be on topics such as derivatives, types of options, and what can determine the price of an option. You may want to use the lesson, Options Basics: Stocks, Payoffs & Puts & Calls to further your awareness of this information.

When to include the other option in a multiple choice question?

Don’t forget to include “other” option: While writing the multiple choice questions it is advisable to include the “other” option so that the respondents have a say to express their opinion if they don’t like the particular answer options that have been given by the survey creator.

How many options questions are on the series 7 exam?

Of the 50 or so options-related questions on the Series 7 exam, approximately 35 deal specifically with options strategies . Options strategies questions in the Series 7 exam, cover the following areas:

How to get GK questions with four options general knowledge quiz?

You will get the Gk Questions and Answers for exam with four options and General Knowledge Competition (Mock test) exam and all other competitive exams like Bank, Railway Exam, Police, SSC CGL and CHSL, UPSC, IAS, SBI PO, Questions are asked from Clerks, IBPS etc.

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