The Series 9 and 10 exams are also known as the General Securities Sales Supervisor Qualification Exams. You must pass both of these in order to be licensed as a general securities sales supervisor. The Series 9 is 90 minutes long with 55 multiple choice questions that are focused on options. Passing the Series 7 exam is a prerequisite for taking the Series 9/10. Start your test prep right now with our free Series 9 practice exam!
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How long must advertisements, market letters, and sales literature issued by a Member Firm pertaining to listed options be retained and readily available for inspection?
Under industry rules, all of the following elements must appear on an order ticket except:
the time an order is accepted
the identity of the RR of record
the exchange where the order is being executed
the identity of the person who receives the order from the client
Which two of the following documents would be required to approve a general partnership account for covered call writing and the purchase of put and call options?
I. a copy of the partnership agreement with specific option language
II. a single option agreement completed by the authorized agent
III. a margin and loan agreement signed by the agent
IV. an individual option form completed by all the partners
I and II
I and IV
II and III
III and IV
How many days after option account opening must a copy of the ODD be provided to the customer?
3 business days
at or prior to account approval
15 calendar days
this is to be provided to the customer upon request
Order the following events from first to last in the opening of a new Option account:
I. Branch Manager Approval
II. ROP Approval
III. ODD furnished to customer
IV. Special Option Account Agreement signed by customer
III, IV, I, II
I, III, II, IV
III, I, II, IV
II, III, IV, I
To complete a vertical bear spread, which of the below must be combined with a long ABC Mar 110 put @ 5 pts?
Short ABC Mar 100 put @ 1 ½ pts
Short ABC Mar 115 put @ 7 pts
Long ABC Mar 105 call @ 4 pts
None of the above
Each morning on the floor of the CBOE, option contracts are introduced at the opening bell in what is commonly referred to as:
An open outcry
An order succession
A short/long alternating procedure
An opening rotation
Broad-based Index Options upon exercise are settled typically according to which of the following methods?
Next day settlement in cash in an amount equal to the intrinsic value of the contract at the time of exercise
Next day settlement in cash in an amount equal to the intrinsic value of the contract as of the close
Two business day regular way settlement and with the delivery of cash equal to the intrinsic value of the contract as of the close
Next day settlement with the delivery of the requisite portfolio of the underlying contract
An example of an "uneconomic trade," as the term is used in the CBOE Manual of Rules, would include:
Short XYZ May 75 put at 1 with a Long XYZ May 80 put at 5 1/2 with XYZ at 72 ¼
Long ZZT Aug 100 call at 10 with a Long ZZT Aug 100 put at ½
Short ABC Dec 40 put at 3 with a Short ABC Dec 40 call at 3
None of these
Whereas the DMM on the floor of the NYSE maintains a fair and orderly market by acting as both broker and dealer when called for,
The Order Book Official at the CBOE may do the same with approval of the Board of Governors of the CBOE.
The Order Book Official at the CBOE may do the same when appropriate.
The Order Book Official may only function in an agency/brokerage capacity.
The Order Book Official may not engage in activities that are either brokerage (agency) nor that are dealer (principal) in capacity.
A margin account customer goes long 1000 shares LAR at $80 with Reg. T at 50% while shorting 10 LAR Sep 85 calls @ 3 pts. The Reg. T requirement for this transaction will be:
A margin account customer goes long 500 shares HML at $60 with Reg. T at 50% while shorting 5 HML Nov. 65 call at 2 pts. The customer’s deposit requirement will be:
In computing the SMA in your client's margin account, long option contracts are:
Included at their current premium
Included at their cost basis
Excluded from the computation
Included to the extent the contracts are intrinsic
Cabinet trading is available principally when a contract:
Is being traded on its expiration date
Is being liquidated at a $.01 per share premium
Is a method of guaranteeing a floor broker an execution for a customer order only
Is a method to enter limit orders for options on the floor
Record keeping retention of option transactions may be done by member firms in all the following ways with the exception of:
Tamper-evident electronic storage
None of the above