Hi daytrader...I was playing around with the test last night over a couple of drinks...hic..where I have differences... #2 I believe should be yes...not sure, just logical, but since I've never had PM don't really know. #3 I circled none of the above and wrote in "who cares they have expired " #4 and I'm not that good at math...BUT you received a credit of2.25 and had to pay 10$ at expiration so I believe your net loss is 10-2.25 or 7.75. #5 when your account is flagged for liquidation you can certainly add funds...buy/sell to close an existing position. all you cannot do is place an order to open an uncovered position. #7 Why would I have to be re-approved at TOS ? #8 either c or e...didn't think there were MSFT preferred shares trading public #11 to hedge ...selling OTM calls is certainly a hedge for a long position so I believe the correct answer is e. all of them. # 12 has me stumped because I'm not sure what they are asking #18...my eyes crossed...I'll ask my husband to do the calculation edit...oh and uhm..my plan is to call compliance and ASK THEM edit edit... # 8 may be a "trick" question.."The following positions belong in the same "security class" or "product group" as a LONG position in MSFT, EXCEPT" ....well #b is SHORT calls which is not a long position...so do they want you to know the product group or security class or do they want you to catch whether the position is long or short? this one is a stupid question.
my answer is b as well ...you CAN NOT place an order to open a NAKED position...buying to close an uncovered position is fine...selling a long is fine and depositing additional funds is fine. what I said is you CAIN'T place an order to OPEN an uncovered (NAKED) position
hey weewillie...its an "OPEN BOOK" test...as I recall when you have an open book test you are allowed to use all the resourses you can find!
i'm from philly. in jersey now. sorry folks, i filed a moderator complaint about posting the exam questions like this. also, i will not hesitate to call TOS tomorrow and tell them that the PM exam has been compromised. i'm not afraid to take a new one, are you?