2026 CFORCE OPTIONS
CLASS MARKER PRACTICE
TEST Question 1: What de�nes an 'Options Class' in �nancial markets?
Choices:
1) All options of a speci�c type (calls or puts) on the same underlying asset 2) All options expiring in the same month 3) All options with the same strike price 4) All options traded on the same exchange Correct Answer: All options of a speci�c type (calls or puts) on the same underlying asset Explanation: An options class consists of all call options or all put options on the same underlying asset.Page 1
Question 2: Which of the following describes an American-style option?
Choices:
1) It can only be exercised on the expiration date 2) It can be exercised at any time up to and including the expiration date 3) It is traded only on US exchanges 4) It settles in physical commodities only Correct Answer: It can be exercised at any time up to and including the expiration date Explanation: American-style options allow the holder to exercise their rights at any time before or on the expiration date.
Question 3: What happens to an out-of-the-money (OTM) option at expiration?
Choices:
1) It is automatically exercised 2) It is converted to shares 3) It expires worthless 4) It rolls over to the next month
Correct Answer: It expires worthless
Explanation: If an option is out-of-the-money at expiration, it has no intrinsic value and expires worthless.Page 2
Question 4: Which regulatory body oversees options trading in the United States?
Choices:
1) SEC
2) FINRA
3) CFTC
4) OCC
Correct Answer: SEC
Explanation: The Securities and Exchange Commission (SEC) broadly oversees the securities markets, including equity options, while the OCC acts as the clearing organization.Question 5: In options trading, what is the 'multiplier' typically set at for standard equity options?
Choices:
1) 10
2) 100
3) 1000
4) 50
Correct Answer: 100
Explanation: A standard equity option contract represents 100 shares of the underlying stock, known as the multiplier.Page 3