Series 7 Interest Rate Options

Series 7 students sometimes have issues with price based and rate based options for Treasury Securities. When sitting for the series 7 exam remember that the price based options provide protection or the opportunity for a profit in the opposite direction as the expected move in interest rates. For example when rates rise an investor would want to purchase price based puts or sell price based calls. When trading interest rate options an investor would buy calls and sell puts when interest rates are expected to rise. Take a few free series 7 exam questions on our site at: www.securitiesce.com