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Series 7 > Options > Flashcards

Options Flashcards

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Series 7 Top-off Exam flashcards
1
Q

Buying a call and buying a put

A

Long straddle

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2
Q

Both expiration and strike is different

A

Diagonal spreed

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3
Q

Short straddle maximum loss and maximum gain

A

Maximum gain is both premiums maximum loss is unlimited

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3
Q

Is a credit call spread bullish or bearish?

A

Bearish

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4
Q

What direction does a debit spreed want the market to move?

A

Widen

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5
Q

Diagonal spreed

A

Strike prices and/or the expiration months are different

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6
Q

Put down rule

A

Find break even by Subtracting the net premium from the higher strike price.

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7
Q

The market attitude of a credit call spread is

A

Bearish

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8
Q

Long put formula

A

Maximum gain = strike price - premium x 100
Maximum loss= premium paid
Breakeven = strike price - premium

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9
Q

Short put formula

A

Maximum gain = premium
Maximum loss = strike price - premium x 100
Breakeven = strike price - premium

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10
Q

Credit put spread formula

A

Max gain = net premium
Max loss = dsp - net premium
Breakeven higher strike price - net premium

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11
Q

selling a call and selling a put

A

Short straddle

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12
Q

Is a debit put spreed bearish or bullish?

A

Bearish

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13
Q

Only expirations are different

A

Calendar spreed

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14
Q

Short call formulas

A

Maximum gain = premium
Max loss = unlimited
Breakeven = strike price + premium

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15
Q

Investor buys an option with a higher premium and simultaneously sells an option with a lower premium

A

Debit call spread

16
Q

Credit call spread maximum loss, maximum gain and breakeven

A

Maximum loss = difference in strike price - net premium
Maximum gain = net premium received
Breakeven = lower strike price + net premium

17
Q

When referring to us companies exporter buy?

A

Puts

18
Q

What direction does a credit spreed want the market to move?

A

Narrow

19
Q

When referring to non us companies exporters buy?

A

Calls

19
Q

Investor paid more than he received

A

Debit spread

19
Q

Long call formula

A

Max gain = unlimited
Max loss = premium
Breakeven = strike price + premium

22
Q

Debit put spread formulas

A

Maximum gain = dsp- net premium
Max loss = net profit
Breakeven = higher strike price - net premium

23
Q

When referring to non us companies importers buy?

A

Puts

26
Q

Investor received more than he paid

A

Credit spread

27
Q

The market attitude of a short straddle

A

Neutral or flat

28
Q

When referring to us companies importers buy?

A

Calls

30
Q

Long combination

A

A long call and a long put with different terms

33
Q

Is a debit call spread bull or bearish?

A

Bull

35
Q

Buys and sells calls or puts. With different expiration, strike prices or both.

A

Spread

36
Q

Debit spread maximum loss? Maximum gain? Break even?

A

Maximum loss = net premium paid
Maximum gain = difference in strike prices - net premium
Breakeven = lower strike price + net premium

37
Q

Is a credit put spread bearish or bullish?

A

Bullish

39
Q

Buying a put and selling a put

A

Put spread

46
Q

Long straddle maximum gain, maximum loss

A

Max gain is unlimited maximum loss is both premiums

47
Q

Combination straddle

A

Same stock but different expiration dates or strike prices

50
Q

Only strike prices are different

A

Vertical spread

52
Q

Break even of a straddle

A

Add the two premiums. Add the total of the premiums to strike price for the call side and subtract the premiums from the contract on the put side.

58
Q

Buying a call and selling a call

A

Call spread

Series 7 (6 decks)

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