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NEW QUESTION: 1
Bubba buys one XYZ September 50 call at $7 and sells one XYZ September 60 call at $3. At that time,
XYZ stock is at $55. Bubba has no other stock positions. What is Bubba's maximum possible profit?
A. unlimited
B. $1,000
C. $500
D. $600
Answer: D
Explanation:
$600. The maximum profit is the difference between strike prices less the debit amount. The
debit amount is $4 ($7 - $3). The difference between strike prices is $10 ($60 - $50). Multiply the $6
difference by 100, which is the number of shares on one option.
NEW QUESTION: 2
Under Regulation T of the Federal Reserve, when may a broker overlook an amount due in a customer's
account?
A. if the client makes a request in writing
B. if it does not exceed $1,000
C. if the value of a trade is less than $1,000
D. under no circumstances
Answer: B
Explanation:
if it does not exceed $1,000. If the net amount due is less than $1,000 no action is required
under Reg T.
NEW QUESTION: 3
Which of the following are true about OAM pages? (Choose two)
A. Modifications to OAM pages hold an exclusive lock for the duration of the user transaction
B. OAM pages are always the first page on an extent
C. The first OAM page for an object may be found by selecting from sysindexes
D. The first OAM page for an object may be found by selecting from sysgams
E. OAM pages are circularly linked
Answer: C,E
