Series 7 Test Questions

Here is a good example of a series 7 test question on options

An investor who sells 5 ABC June 50 calls at 2.10 to open and who buys 5 ABC June 40 calls at 5.05 will have to deposit how much to maintain the position?

A)$505
B)$295
C)$1,475
D)$2,525

C)The investor will have to deposit the total net debit for the spread of $1,475. Found by subtracting the credit of 2.10 from the debit of 5.05 = 2.95 X 500 = $1,475.

Take some more free series 7 test questions on our site at:
http://www.securitiesce.com/web/pages/series7/index.php