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Series 7 Options Practice Questions
Use these free sample questions to rehearse calls, puts, breakevens, spreads, hedges, and suitability logic. These are educational examples, not actual FINRA exam questions.
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An investor buys 1 ABC 40 call at 3. What is the breakeven at expiration?
Topic summary
What this drill teaches
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.
Use this sample set to rehearse the rule. Full access adds the complete mapped bank, saved progress, and exam-style mixed practice.
Common traps
Miss these once here, not on exam day
- 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.
How to use the page
Answer, review, then fix the miss.
Answer the sample, review the explanation, then move into the related chapter or diagnostic before the same mistake appears in a mixed set.
Exam depth
How to study this page
What the exam is testing
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.Why candidates miss it
Reversing long and short premium treatment.Exam trap
Using put breakeven math on a call, or call math on a put.Memory trick
Before answering, say the tested rule in one sentence, then point to the exact clue in the stem. For options, the clue usually appears before the answer choices start to look tempting.Work all 10 questions once for accuracy, then repeat only the missed explanations and related concept links. The goal is not memorizing these questions; it is recognizing the rule trigger in a new prompt.
Related concepts
Related concept map
Use this map when a question exposes a weak rule. Move from the missed explanation into the related concept, then return to the drill.
Get an instant score, missed topics, and an optional missed-topic study plan.
Review Series 7 options formulasMemorize max gain, max loss, and breakeven templates.
Series 7 options overviewRebuild option contract vocabulary and payoff logic.
Drill Series 7 margin questionsSwitch from options payoff math into long and short margin account math.
Drill Series 7 municipal bond questionsMove from options math into GO, revenue, tax, and MSRB clues.
Drill Series 7 debt securities questionsReview yield, discount, premium, call, and credit-risk clues.
Review Series 7 suitability scenariosConnect options strategy selection to customer-profile fit.
Series 7 study guide 2026Review the chapter outline before you drill more questions.
Preview the options chapterPreview the related chapter to place these drills in sequence.
See PassSeries7 pricingUnlock the full textbook, flashcards, mapped practice, and exam simulation.
Free 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?
Show answer and explanation
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
0/10
Answer every question for a topic score.
Use this topic drill as a warmup. For a mixed-topic routing signal, take the free diagnostic and request the missed-topic study plan after your score appears.
Next study steps
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.
- Drill Series 7 municipal bond questions
Move from options math into GO, revenue, tax, and MSRB clues.
- Drill Series 7 debt securities questions
Review yield, discount, premium, call, and credit-risk clues.
- Review Series 7 suitability scenarios
Connect options strategy selection to customer-profile fit.
- Series 7 study guide 2026
Review the chapter outline before you drill more questions.
- Preview the options chapter
Preview the related chapter to place these drills in sequence.
- See PassSeries7 pricing
Unlock the full textbook, flashcards, mapped practice, and exam simulation.
- Review the Series 7 study guide
Use the chapter outline to decide what to read before the next topic drill.
Mixed-topic check
See how this topic holds up in a mixed quiz
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.