SIE EXAM ASKS QUESTIONS ABOUT PUT AND CALL OPTIONS. BE PREPARED!
If you plan to sit for the Securities Industry Essentials (SIE) Exam in the near future, you need to know that the SIE exam asks questions about options. The topic of options is contained in Section 2 of the FINRA Study Outline for the SIE test, Section 2 has the most questions, 33 in total, and a chunk of those are on options, found in 2.1.3 of the Study Outline. One of the characteristics of options is identifying a put or call as in-the-money, at-the-money, and out-of-the-money. Make sure you can properly apply these terms. For example, a put option is in-the-money when the stock price is below the option's strike price. If you are fuzzy about these concepts, meaning that you are unable to confidently state when an option is in-the-money, etc., you need help in preparing for the SIE exam. Bob Eder J.D.'s book Study for the Securities Industry Essentials (SIE) Exam covers options in detail with practice questions and real-life examples. It is available from Am