ROP /
Finra
/ /
Series
/ //
4 Exam Questions With Correct Answers
// // // // //
Level //3 //options //additional //disclosure //requirement //- //verified //answer(s)-
✔✔since /
/Level //
3/
/permits //uncovered //writing, //the //client //is //subject //to //maximum //risk //exposure. //As //a //result,
//he /
/will /
/receive /
/an /
/additional //document //that's //referred //to //as //the //Special //Statement //for //Uncovered //Writers.
Account /
/statements /
/for //options //customers //stay //on //file //for //what //time //period? //- //verified //answer(s)-
✔✔copies /
/of /
/account /
/statements /
/for /
/options /
/customers /
/must /
/be /
/kept /
/at /
/both /
/the /
,/branch /
/office /
/that /
/supervises /
/the /
/account /
/and /
/the /
/principal /
/supervisory //office //that //has //jurisdiction //over //that //branch //for //the //most //recent //six-
month //period
VIX //options //trade //what //time //period? //- //verified //answer(s)-
✔✔VIX /
/options //trades //from //9:30 //a.m. //to //4:15 //p.m. //ET //(8:30 //a.m. //to //3:15 //p.m. //CT). //(38850)
Under /
/Reg //SHO, //a //firm's //Easy //to //Borrow //(ETB) //list //must //be //updated //- //verified //answer(s)-
✔✔at //least //every //24 //hours
A //"collar" //consists //of //- //verified //answer(s)-
✔✔A /
/collar /
/consists /
/of //
a/
/long /
/stock /
/position, /
/the /
/purchase /
/of //
a/
/put /
/option /
,/with //
a //strike //price //that's //below //the //current //market //price //of //the //stock, //and //the //sale //of //a //call
//option /
/with //
a/
/strike /
/price /
/that's /
/above /
/the /
/current /
/market //price //of //the //stock. //In //other //words, //both //the //call //and //the //put //options //are //out-
of-the-
money //when //the //position //is //established. //The //objective //of //a //collar //is //to //lock //in //a //selling
//price. /
/If /
/the /
/market /
/price /
/of /
/the /
/stock /
/declines, /
/the /
/put /
/option /
/is /
/exercised /
/by /
/the /
/investor. /
/Alternatively, /
/if /
/the /
/stock /
/rises //above //the //strike //price //of //the //call, //the //writer //may //receive //an //assignment //notice //to
//sell //the //stock. //(38768)
, Painting //the //Tape //consists //of //- //verified //answer(s)-
✔✔Painting /
/the /
/Tape /
/is //
a/
/technique /
/whereby /
/individuals /
/acting /
/in /
/concert /
/repeatedly /
/sell //
a/
/security /
/to /
/one /
/another /
/without /
/actually //changing //ownership //of //the //securities. //This //is //intended //to //give //an //impression //of
//increased //trading //volume. //The //regulators //consider //this //to //be //a //type //of //manipulation.
Marking //the //Close //consists //of //- //verified //answer(s)-
✔✔Entering /
/large /
/trades /
/at /
/the /
/end //of //the //day //specifically //to //affect //the //closing //price //is //known //as //marking //the //close.
Tender //offers //are //held //open //for //(days) //- //verified //answer(s)-
✔✔at /
/least /
/20 /
/business /
Finra
/ /
Series
/ //
4 Exam Questions With Correct Answers
// // // // //
Level //3 //options //additional //disclosure //requirement //- //verified //answer(s)-
✔✔since /
/Level //
3/
/permits //uncovered //writing, //the //client //is //subject //to //maximum //risk //exposure. //As //a //result,
//he /
/will /
/receive /
/an /
/additional //document //that's //referred //to //as //the //Special //Statement //for //Uncovered //Writers.
Account /
/statements /
/for //options //customers //stay //on //file //for //what //time //period? //- //verified //answer(s)-
✔✔copies /
/of /
/account /
/statements /
/for /
/options /
/customers /
/must /
/be /
/kept /
/at /
/both /
/the /
,/branch /
/office /
/that /
/supervises /
/the /
/account /
/and /
/the /
/principal /
/supervisory //office //that //has //jurisdiction //over //that //branch //for //the //most //recent //six-
month //period
VIX //options //trade //what //time //period? //- //verified //answer(s)-
✔✔VIX /
/options //trades //from //9:30 //a.m. //to //4:15 //p.m. //ET //(8:30 //a.m. //to //3:15 //p.m. //CT). //(38850)
Under /
/Reg //SHO, //a //firm's //Easy //to //Borrow //(ETB) //list //must //be //updated //- //verified //answer(s)-
✔✔at //least //every //24 //hours
A //"collar" //consists //of //- //verified //answer(s)-
✔✔A /
/collar /
/consists /
/of //
a/
/long /
/stock /
/position, /
/the /
/purchase /
/of //
a/
/put /
/option /
,/with //
a //strike //price //that's //below //the //current //market //price //of //the //stock, //and //the //sale //of //a //call
//option /
/with //
a/
/strike /
/price /
/that's /
/above /
/the /
/current /
/market //price //of //the //stock. //In //other //words, //both //the //call //and //the //put //options //are //out-
of-the-
money //when //the //position //is //established. //The //objective //of //a //collar //is //to //lock //in //a //selling
//price. /
/If /
/the /
/market /
/price /
/of /
/the /
/stock /
/declines, /
/the /
/put /
/option /
/is /
/exercised /
/by /
/the /
/investor. /
/Alternatively, /
/if /
/the /
/stock /
/rises //above //the //strike //price //of //the //call, //the //writer //may //receive //an //assignment //notice //to
//sell //the //stock. //(38768)
, Painting //the //Tape //consists //of //- //verified //answer(s)-
✔✔Painting /
/the /
/Tape /
/is //
a/
/technique /
/whereby /
/individuals /
/acting /
/in /
/concert /
/repeatedly /
/sell //
a/
/security /
/to /
/one /
/another /
/without /
/actually //changing //ownership //of //the //securities. //This //is //intended //to //give //an //impression //of
//increased //trading //volume. //The //regulators //consider //this //to //be //a //type //of //manipulation.
Marking //the //Close //consists //of //- //verified //answer(s)-
✔✔Entering /
/large /
/trades /
/at /
/the /
/end //of //the //day //specifically //to //affect //the //closing //price //is //known //as //marking //the //close.
Tender //offers //are //held //open //for //(days) //- //verified //answer(s)-
✔✔at /
/least /
/20 /
/business /
