Question 1
A customer owns 100 shares of XYZ stock at $50 per share and writes a covered call with a strike price of $55. What is the maximum profit potential on this position?
Correct Answer:
$$500 plus the premium received
Question 2
A registered options principal is reviewing a customer account that shows a long position of 100 shares of ABC at $40 and a long put with a $40 strike. This strategy is best described as:
Correct Answer:
A protective put (married put)
Question 3
A customer establishes a bull call spread by buying a $50 call for $3 and selling a $55 call for $1. What is the maximum loss and maximum gain for this position?
Correct Answer:
Max loss $200, max gain $300
Question 4
A registered options principal reviewing a customer account discovers a short strangle position: short $45 put and short $55 call, with the stock at $50. What is the maximum risk?
Correct Answer:
Unlimited on the upside, substantial on the downside
Question 5
A customer creates a collar by buying stock at $50, buying a $45 put for $1, and selling a $55 call for $1. What is the net cost of the protective strategy?
Correct Answer:
$$50 per share
Question 1
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About this Exam

Prepare with the Series 4 Practice Questions - Registered Options Principal Qualification Examination Exam practice quiz. This question bank includes 100 questions covering registered, customer, principal, call, and account. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Series 4 Practice Questions - Registered Options Principal Qualification Examination Exam

This practice set contains 100 questions from the matching question bank and focuses on registered, customer, principal, call, and account. 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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