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Series-7 – General Securities Representative Qualification Examination (GS)

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Showing 10–12 of 15 questions

Question 10

A corporate bond is quoted as having a net change in value of plus one point.

By how much did the bond price increase?

Select an option, then click Submit answer.

  • ○

    $1,000
  • ○

    $100
  • ○

    $10
  • ○

    $1
Question 11

In early September, Bubba buys 100 shares of XYZ for $83 per share and simultaneously writes one XYZ March 90 call for $4.

What is the price for XYZ stock at which Bubba will breakeven?

Select an option, then click Submit answer.

  • ○

    $94
  • ○

    $87
  • ○

    $86
  • ○

    $79

Question 12

Which of the following is true about option prices?

Select an option, then click Submit answer.

  • ○

    premiums on options for listed stocks are usually greater than on unlisted stocks
  • ○

    premiums on options of higher-priced stocks are usually greater than on lower-priced stocks
  • ○

    premiums on options of well-known companies are usually larger than on lesser-known companies
  • ○

    premiums on options of volatile stocks are usually larger than on less volatile stocks