Question 1
What is a 'ratio spread' in options trading?
Correct Answer:
Buying one option and selling more than one option at a different strike
Question 2
What is a 'calendar spread' (also called a 'time spread')?
Correct Answer:
Buying a longer-dated option and selling a shorter-dated option at the same strike
Question 3
What is a 'diagonal spread' in options?
Correct Answer:
Buying a longer-dated option and selling a shorter-dated option at a different strike
Question 4
What is a 'synthetic long stock' position in options?
Correct Answer:
Buying a call and selling a put at the same strike and expiration
Question 5
What is a 'backspread' in options trading?
Correct Answer:
Selling fewer options than you buy, seeking to profit from a large move
Question 1
Exam overview

About this Exam

Prepare with the FINRA Series 4 - Registered Options Principal Exam practice quiz. This question bank includes 30 questions covering call, nifty, spread, price, and short. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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FINRA Series 4 - Registered Options Principal Exam

This practice set contains 30 questions from the matching question bank and focuses on call, nifty, spread, price, and short. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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