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SOFE Exam SOFA-CFE Topic 6 Question 71 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 71
Topic #: 6

[All SOFA-CFE Questions]

An option to sell a particular stock at a fixed price within a stated period of time is called:

Aput

Bcall

Chedge

DCapital gain

Show Suggested Answer

Suggested Answer: D

by Goldie at Jul 06, 2023, 12:22 AM

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Fannie

1 months ago

Wait, is the answer D) Capital gain? I mean, that's what we're all hoping for when we trade options, right? Haha, just kidding. I'm pretty sure it's B) call.

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Goldie

1 months ago

Aw man, I totally blanked on this one. Is it C) hedge? I know that has something to do with options trading, but I can't recall the specifics.

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Ora

2 days ago

The correct answer is A) put. It gives you the right to sell a stock at a fixed price.

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Noelia

16 days ago

No, it's not C) hedge. Think about the options carefully.

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Dottie

1 months ago

I think I remember learning about this in my finance class. The correct answer has to be B) call. That's the one where you have the right to buy the stock, right?

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Alpha

5 days ago

I remember now, C) hedge is a strategy to reduce risk by taking an offsetting position.

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Jin

8 days ago

Actually, the correct answer is B) call. It's the option to buy a particular stock at a fixed price within a stated period of time.

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Levi

12 days ago

Yes, you're correct! A) put is the option to sell a particular stock at a fixed price within a stated period of time.

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Ricki

2 months ago

Hmm, let's see... A put option, that's the one where you have the right to sell the stock, right? Looks like B) call is the odd one out here.

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Glen

14 days ago

So, the odd one out here is B) call. It doesn't involve selling the stock like the other options.

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Carissa

1 months ago

That's right. A call option is the opposite, it gives you the right to buy a stock at a fixed price within a stated period of time.

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Janine

1 months ago

Yes, you're correct. A put option gives you the right to sell a stock at a fixed price within a stated period of time.

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Gail

2 months ago

This one's a no-brainer! The answer is clearly A) put. Gotta love those options trading terms.

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Cecil

2 months ago

But a put option gives you the right to sell at a fixed price, while a call option gives you the right to buy at a fixed price.

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Mitzie

2 months ago

I disagree, I believe the correct answer is B) call.

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Cecil

2 months ago

I think the answer is A) put.

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Dana

2 months ago

I'm not sure, but I think it might be C) hedge because it helps manage risk.

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Shasta

2 months ago

I agree with Susana, a put option allows you to sell at a fixed price.

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Susana

2 months ago

I think the answer is A) put.

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