ROP /
Finra
/ /
Series
/ //
4 Exam Questions With Correct Answers
// // // // //
Level //
3/
/options /
/additional /
/disclosure /
/requirement //- //correct //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? //- //correct //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? //- /
/correct /
/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 //- //correct //answer(s) //✔✔ //at //least //every //24 //hours
A //"collar" /
/consists /
/of //- /
/correct /
/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 //- /
/correct /
/answer(s) /
/✔✔ /
/Painting //the //Tape //is //a //technique //whereby //individuals //acting //in //concert //repeatedly //sell //a
//security /
/to /
Finra
/ /
Series
/ //
4 Exam Questions With Correct Answers
// // // // //
Level //
3/
/options /
/additional /
/disclosure /
/requirement //- //correct //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? //- //correct //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? //- /
/correct /
/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 //- //correct //answer(s) //✔✔ //at //least //every //24 //hours
A //"collar" /
/consists /
/of //- /
/correct /
/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 //- /
/correct /
/answer(s) /
/✔✔ /
/Painting //the //Tape //is //a //technique //whereby //individuals //acting //in //concert //repeatedly //sell //a
//security /
/to /
