Series 7 practice questionmediumOptions Calculations 40
An investor writes 1 cash-secured XYZ 75 put at 6. What is the breakeven point at expiration?
- A$69✓ Correct answer
- B$81
- C$6
- D$75
Explanation
Why A — $69
A short put breaks even at strike minus premium received. If the stock falls below that point, the writer’s obligation to buy the stock creates losses.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Information & Recommendations questions
- A 35-year-old customer contributes to a traditional IRA and meets the eligibility rules. The primary tax feature is…
- An investor buys 1 XYZ 70 put at 5. What is the breakeven point at expiration?
- A 36-year-old investor wants tax-free qualified withdrawals in retirement. Which plan best fits?
- An investor writes 1 uncovered XYZ 65 call at 4. What is the maximum possible gain?