Finra Exam Series-7 Topic 6 Question 100 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 100
Topic #: 6

Bubba's order to purchase investment company shares must be executed at a price based upon the net asset value of the shares:

Anext computed after receipt of the order by the dealer

Blast computed before receipt of the order by the dealer

Ccomputed the previous day at the close of the NYSE

Dcomputed the same day the order is received by the dealer

Show Suggested Answer

Suggested Answer: D

0.7435. The put protects against a decline in the exchange rate for Canadian dollars. However, the cost of the put raises the breakeven point to 0.7435 (0.7400 + 0.0035).

by Nickie at Sep 18, 2024, 08:53 PM

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Carey

1 months ago

Bubba's going to need a bigger order to get a good deal on these investment shares. Maybe he should try the discount bin instead!

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Judy

3 days ago

A) next computed after receipt of the order by the dealer

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Eileen

2 months ago

This is a tough one. I'm torn between B and D. I guess I'll go with B, since it seems more logical to use the last computed price rather than waiting for a new one.

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Harrison

23 days ago

I see your point, but I still think D is the better choice in this scenario.

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Ollie

25 days ago

But wouldn't it be more accurate to use the last computed price before receiving the order?

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Beckie

1 months ago

I agree, it makes sense to use the most up-to-date information for the transaction.

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Arminda

2 months ago

I think it's D, the price should be computed the same day the order is received.

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Salome

2 months ago

I'm not sure, but I think it makes sense for the price to be based on the most recent computation, so I agree with Penney.

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Penney

2 months ago

I disagree, I believe the answer is D) computed the same day the order is received by the dealer.

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Zita

2 months ago

I think the answer is B) last computed before receipt of the order by the dealer.

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Marvel

2 months ago

Hmm, I'm not sure about this one. Maybe A) next computed after receipt of the order by the dealer? That would ensure the most up-to-date pricing, right?

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Martina

1 months ago

I agree, it would be best to have the price based on the most recent net asset value of the shares.

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Maryanne

1 months ago

I think you're right, A) next computed after receipt of the order by the dealer makes sense for accurate pricing.

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Roxane

2 months ago

D) computed the same day the order is received by the dealer seems like the obvious choice to me. Why would they use a price that's not current?

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I think the correct answer is B) last computed before receipt of the order by the dealer. It makes sense that the price should be based on the most recent net asset value, not something from the previous day or a future computation.

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Fernanda

25 days ago

I see your point, but I still think it's A) next computed after receipt of the order.

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Blossom

29 days ago

Actually, I believe it's B) last computed before receipt of the order by the dealer.

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Annalee

1 months ago

I think it's A) next computed after receipt of the order by the dealer.

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Johnetta

1 months ago

I agree, the price should be based on the most recent net asset value.

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Finra Exam Series-7 Topic 6 Question 100 Discussion

Contribute your Thoughts:

Carey

Judy

Eileen

Harrison

Ollie

Beckie

Arminda

Salome

Penney

Zita

Marvel

Martina

Maryanne

Roxane

Lauryn

Fernanda

Blossom

Annalee

Johnetta