SIE UPDATED Exam Questions and CORRECT Answers

What type of risk is unique to a specific industry, business enterprise, or investment type? - Nonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? - Buy a call, sell a call (The holder of a call has the right to buy stock at the strike price if exercised. The seller of a put is obligated to buy stock at the strike price if exercised) Options- a premium - the cost of an option contract, expressed in dollars per share of the underlying stock Options- strike price - The price at which the stock will be bought or sold if the contract is exercised, expressed in dollars per share A customer believes that ABC's price will go up but does not have the money to buy 100 shares right now. How could the customer use options to profit from an increase in the stock's price? - buy calls, write puts (both are bullish