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STC Series 7 Chapter 17 Practice Exam 2025 With 100% Correct Answers
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16

August 2025

2025/2026

A+
Compared to selling short, buying a put option: A. Requires a larger capital commitment B. Has a larger loss potential C. Does not require the client to arrange to borrow the stock D. Requires a margin account - CORRECT ANSWERC. Does not require the client to arrange to borrow the stock Short selling requires the deposit of margin, whereas the premium on a put is usually substantially less than the Regulation T margin requirement. On a short sale, the seller's risk is unlimited, whereas ...
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