Series 66 Exam Lesson 34 Options pt 1

This is a Series 66 Exam Lesson 34 Options pt 1: a free quiz for Series 66 Exam Lesson 34 Quiz which is covering Options part 1 . Try it and see how you do if you need help listen to the lesson over.

Series 65 Exam Lesson 34 Options pt 1

This is a Series 66 Exam Lesson 34 Options pt 1 which is Options pt. 1. Try it and see how you do if you need help listen to the lesson over.

Questions covered include

Below are questions based on the lesson 34 of the series. Choose the letter of the correct answer.

1. The oldest recorded option was about _____ getting options on the use of olive presses for a small price and charging olive growers exorbitant price for the use of those olive presses.

A. Nassim Taleb

B. Parmenides of Elea

C. Pythagoras

D. Thales of Miletus

2. It gives the holder or buyer of the option the right to purchase a specific number of shares of stock.

A. call option

B. order option

C. purchase option

D. put option

3. All of the following are needed in evaluating the value of an option EXCEPT ___.

A. expiration date of the option

B. interest rate

C. stock price

D. strike price

4. The premium is the price paid for an option.

A. True

B. False

5. Brokerage firms require same-day settlement on the options that are bought from them.

A. True

B. False

6. In a call option, it is the price at which the stock can be bought.

A. option price

B. option rate

C. stock price

D. strike price

7. Which of the following makes a call option valuable?

A. when the stock price is greater than the strike price after the expiration of the option

B. when the stock price is greater than the strike price before the expiration of the option

C. when the strike price is greater than the stock price after the expiration of the option

D. when the strike price is greater than the stock price before the expiration of the option

8. The more time you have on the option, the more expensive the option becomes.

A. True

B. False

9. In the “in the money option”, the strike price is above the current stock price.

A. True

B. False

10. It is the difference between the strike price and the current stock price when the strike price is lower than the current stock price.

A. absolute value

B. intrinsic value

C. option value

D. par value

Series 66 Exam Lesson 34 Quiz Continued

11. If the stock price increases before the option expires, the intrinsic value of the option ___.

A. decreases

B. increases

C. remains constant

D. There is no direct relationship between the stock price and the intrinsic value of the option.

12. It is the price paid over the intrinsic value for the time period of the option.

A. premium value

B. premium intrinsic value

C. settlement value

D. time value

13. When the time value of the option declines to zero, what is left to the option at the time of expiration is its ___.

A. intrinsic value

B. par value

C. strike value

D. The time value will never decline to zero.

14. It is the right to sell the stock at a specific price.

A. call feature

B. call option

C. put feature

D. put option

15. In a put option, it is the price at which the stock can be sold.

A. option price

B. option rate

C. stock price

D. strike price

16. If the current price of the stock in the market is $60 and it was offered in a call option at a strike price is $50, what is the intrinsic value of the option?

A. $10

B. $110

C. $5

D. $55

17. An option that has expired loses its intrinsic value.

A. True

B. False

18. If you bought a call option at a premium of $18 to buy a stock at $50 that is now selling in the market at $60, how much did you pay for the time value?

A. $10

B. $18

C. $8

D. $9

19. If the current price of the stock in the market is $60 and the strike price is $50 in a put option, what is the intrinsic value of the put option?

A. $5

B. $10

C. $55

D. The put option has no intrinsic value.

20. What value does an out of the money put option has?

A. intrinsic value only

B. time value only

C. both intrinsic value and time value

D. neither intrinsic value nor time value

We hope you did well on this Series 66 Lesson 22 Free Quiz

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The Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.

The other possible exam would be the series 65 examination.

The Series 66 exam — the NASAA Uniform Combined State Law Examination — is a North American Securities Administrators Association (NASAA) exam administered by FINRA.

The exam consists of 100 scored questions. Candidates have 150 minutes to complete the exam. In order for a candidate to pass the Series 66 Exam, he/she must correctly answer at least 73 of the 100 scored questions.

There is no prerequisite for the Series 66 examination. However, the  SIE and the Series 7 examination are co-requisites to the Series 66 Examination.

What is the Series 65 Exam?

The Series 65 is another path to becoming an Investment Advisor Representative (IAR)

Sometimes called the IAR in a box

Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement

The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.

When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The NASAA, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.

Again requisites for this exam are the SIE Exam and the Series 7 Exam Top Off

The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 65.

Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.

Series 66 Exam Free Audio Lesson 13

Series 66 Exam Free Audio Lesson 13 is a lesson for the Series 66 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.

The Series 66 Exam consists of 100 questions. When taking the Series 66 to join an RIA firm as a IAR, candidates must complete the exam within 150 minutes. A passing score is 73%, which translates to correctly answering 73 of the 100 scored questions. The Financial Industry Regulatory Authority, which administers the exam, does not release Series 66 pass rates. But this is a TOUGH exam, many people do not pass on the first try.

The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 66.

The other possible exam path to become a IAR would be the series 65 examination.

What is the Series 65 Exam?

Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement

The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.

Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.

Series 65 vs Series 66 Exam

The Series 65 exam is designed for those who do not have a Series 7 license. The content of both exams are similar though the Series 65 will be more heavily concentrated on Investment products and economics (