Updated Finra Series-7 Practice Questions BY Flores
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Uploaded by Flores
14-Oct-2026
Verified by Experts
Based on Latest Exam Syllabus
Question 1
Bubba held one XYZ July 30 listed call option when XYZ split 2 for 1.
What is the resulting position, Bubba has on the Option Clearing Corporation's record?
A.long one XYZ July 30 call
B.long one XYZ July 30 call and short one XYZ July 30 call
C.long two XYZ July 30 calls
D.long two XYZ July 15 calls
Correct Answer: DExplanation:
long two XYZ July 15 calls. Double the number of contracts and half the strike price. This is similar to XYZ shareholders doubling the number of shares they hold at the lower price.