Public options drill
Series 7 Options Practice Questions
Use these public sample questions to rehearse calls, puts, breakevens, spreads, hedges, and suitability logic. These are educational examples, not actual FINRA exam questions.
10 public questions
Explanations in HTML
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Topic summary
Options questions usually combine position type, premium flow, breakeven math, and customer purpose. Start by naming the position, then calculate max gain, max loss, and breakeven before reading the answer choices.
Every question, answer choice, correct answer, and explanation on this page is public sample content. The private PassSeries7 mapped bank remains protected inside the paid product.
Common traps
- Reversing long and short premium treatment.
- Using put breakeven math on a call, or call math on a put.
- Ignoring whether a spread is debit or credit.
- Choosing an options strategy that solves the math but fails suitability.
Public options sample questions
0 of 10 answered
Question 1 / 10
OptionsAn investor buys 1 ABC 40 call at 3. What is the breakeven at expiration?
Show answer and explanation
Correct answer: 43
Explanation: A long call breaks even at strike price plus premium paid. The breakeven is 40 + 3 = 43.
Related: Options breakeven formulas
Question 2 / 10
OptionsA customer buys 1 XYZ 55 put at 4. What is the breakeven at expiration?
Show answer and explanation
Correct answer: 51
Explanation: A long put breaks even at strike price minus premium paid. The breakeven is 55 - 4 = 51.
Related: Put option formulas
Question 3 / 10
OptionsA customer owns 100 shares of DEF and sells 1 DEF call. What is the most likely objective?
Show answer and explanation
Correct answer: Generate income on a stock position
Explanation: A covered call generates premium income, but it limits upside because the stock can be called away if assigned.
Related: Covered call overview
Question 4 / 10
OptionsA customer owns 100 shares of GHI and buys 1 GHI put. What is the put primarily doing?
Show answer and explanation
Correct answer: Protecting the stock position from downside
Explanation: A protective put works like insurance on a long stock position. It creates a floor, but the premium is the cost of that protection.
Related: Hedging with puts
Question 5 / 10
OptionsWhat is the maximum loss for an uncovered short call?
Show answer and explanation
Correct answer: Unlimited
Explanation: An uncovered short call has unlimited loss because the stock can keep rising and the seller may have to buy shares at the market price for delivery.
Related: Short call risk
Question 6 / 10
OptionsA customer sells 1 JKL 30 put at 2. What is the maximum loss before commissions?
Show answer and explanation
Correct answer: $2,800
Explanation: A short put maximum loss is strike price minus premium, times 100 shares. (30 - 2) x 100 = $2,800.
Related: Short put formulas
Question 7 / 10
OptionsA customer buys one call for 6 and sells another call with the same expiration for 2. What type of spread is this?
Show answer and explanation
Correct answer: Debit spread
Explanation: The customer pays more premium than they receive, so the spread is opened for a net debit of 4.
Related: Spread formulas
Question 8 / 10
OptionsA long straddle is generally most suitable when the investor expects what?
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Correct answer: A large move in either direction
Explanation: A long straddle buys a call and a put at the same strike and expiration. It benefits from a large move either up or down.
Related: Volatility strategies
Question 9 / 10
OptionsWhich customer profile is usually least appropriate for uncovered option writing?
Show answer and explanation
Correct answer: Retired investor needing capital preservation
Explanation: Uncovered writing can create substantial or unlimited risk. It is usually inconsistent with capital preservation and low risk tolerance.
Related: Suitability scenarios
Question 10 / 10
OptionsAn equity option contract normally represents how many shares of the underlying stock?
Show answer and explanation
Correct answer: 100
Explanation: Standard listed equity option contracts generally cover 100 shares, unless an adjustment changes the contract terms.
Related: Options contract basics
Topic score
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Related Series 7 resources
- Take the free Series 7 diagnostic
Get an instant score, missed topics, and an optional missed-topic study plan.
- Review Series 7 options formulas
Memorize max gain, max loss, and breakeven templates.
- Series 7 options overview
Rebuild option contract vocabulary and payoff logic.
- Drill Series 7 margin questions
Switch from options payoff math into long and short margin account math.
- Review Series 7 suitability scenarios
Connect options strategy selection to customer-profile fit.
- Series 7 study guide 2026
Review the public chapter outline before you drill more questions.
- Preview the options chapter
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- See PassSeries7 pricing
Unlock the full textbook, flashcards, mapped practice, and exam simulation.
- Review the Series 7 study guide
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Topic drills are useful, but the real exam switches topics constantly. Take the free Series 7 diagnostic when you want an instant mixed score and an optional missed-topic study plan sent through the existing diagnostic funnel.