Options And Futures FAQs

  1. If a LEAP option is purchased and held for more than 12 months, is the tax treatment long term?

  2. Is there ever a bad time to invest in gold?

  3. Where can I purchase options?

  4. How can I invest in a foreign exchange market?

  5. What is a derivative?

  6. What is the hard-to-borrow list?

  7. How does margin trading in the forex market work?

  8. What is the difference between trading currency futures and spot FX?

  9. Is it possible to trade forex options?

  10. I want to start buying stocks. Where do I start?

  11. What should I look for when choosing a forex trading platform?

  12. What is the difference between LIBOR, LIBID and LIMEAN?

  13. How much money do I need to start trading?

  14. What is the difference between the bond market and the stock market?

  15. What is the difference between an options contract and a futures contract?

  16. After exercising a put option, can I still hold my option contract in order to sell it at a lower price?

  17. What are the requirements to be able to contribute to an HSA?

  18. What is a "wash sale"?

  19. If I buy a stock at $45 and I put a stop limit in to sell at $40, will I be guaranteed a sell once the stock has reached this price?

  20. What are some common hand signals on the trading floor?

  21. Is life insurance good for mortgage protection?

  22. Why is Game Theory useful in business?

  23. What are the differences between AMEX and Nasdaq?

  24. What are the distribution options for an inherited annuity?

  25. What is a call rule?

  26. My variable annuity account took a beating. Should I seek other alternatives?

  27. Why would you want a monthly benefit versus a daily benefit?

  28. Who set the record loss for "rogue traders"?

  29. When holding an option through expiration date, are you automatically paid any profits, or do you have to sell the option and pay commissions?

  30. Which of the following BEST describes tax treatment of a long option that expires without exercise?

  31. What is the difference between systemic risk and systematic risk?

  32. Which is TRUE about Treasury bond futures?

  33. How do I employ a cash-and-carry trade?

  34. What are all of the securities markets in the U.S.A?

  35. What does it mean when futures prices are in contango?

  36. Which insurance policies do I really need?

  37. What is an unregistered mutual fund?

  38. Is it possible to short sell real estate?

  39. A Straddle

  40. What is an alligator spread?

  41. What is the gold standard?

  42. What was the Gold Reserve Act?

  43. All of these apply to an option exercise notice EXCEPT:

  44. What is the difference between return on equity and return on capital?

  45. What does it mean when advertisers say that "financing is available"? Should I trust them to give me a good deal?

  46. What is the salad oil scandal?

  47. What is a wild-card play?

  48. How did currency trader John Rusnak hide $691 million in losses before being caught for bank fraud?

  49. What is a vest fleece?

  50. Do hedge funds and mutual funds invest in commodities in high inflation environments?

  51. How do I measure option liquidity?

  52. How can I invest in gold?

  53. How do speculators profit from options?

  54. Do I need to take the Series 6 examination after I have already successfully completed the Series 7?

  55. How do I register for the CFA program for the first time?

  56. How can I buy oil as an investment?

  57. What kinds of investments are allowed in a qualified retirement plan, and what kinds are forbidden?

  58. I converted my former IRA to a Roth for tax purposes in 1998, so even though the tax was paid over four years, am I correct to assume that this is now mine to withdraw, if I like, at no penalty? I am 60 years old.

  59. Which option is better on a mutual fund: a growth option or a dividend reinvestment option?

  60. Can I make money using put options when prices are going up?

  61. What is the difference between forward and futures contracts?

  62. What does it mean when a bond has a put option?

  63. I am not a resident of the United States, but would like to be qualified as a registered representative in the U.S. Is it still possible for me to write the Series 7 exam?

  64. What are the oldest mutual funds, by date of inception?

  65. When you buy a stock in a company, does it necessarily mean that one of the shareholders is selling it to you?

  66. Can I roll over a profit-sharing plan to an SEP IRA account without suffering any tax penalties and liquidation of current positions held in this account?

  67. What is the difference between options and futures?

  68. My brokerage firm won't allow naked option positions. What does this mean?

  69. What is an evergreen provision and how does it affect shareholders?

  70. Why do futures' prices converge upon spot prices during the delivery month?

  71. Why do options with the same underlying stock and strike prices trade for different amounts?

  72. As a temporary resident of the US, can I withdraw funds from my Traditional IRA without penalty when I leave the country?

  73. How do I go about opening up a Roth IRA?

  74. Is technical analysis used only to analyze stocks?

  75. What does the term "stock-for-stock" mean?

  76. What is the difference between hedging and speculation?

  77. How do you calculate the cost basis for a mutual fund over an extended time period?

  78. What will happen to my SEP IRA if I leave my current employer?

  79. How do I use a "basket" option?

  80. I overcontributed to my 401(k). What are my options?

  81. I own options on a stock, and it's just announced a split. What happens to my options?

  82. Why would a person choose a mutual fund over an individual stock?

  83. What is dilutive stock?

  84. What is the put-call ratio and why should I pay attention to it?

  85. How are futures used to hedge a position?

  86. What happens to my call options if the underlying company is bought out?

  87. What is hedging as it relates to forex trading?

  88. What was "Operation Wooden Nickel"?

  89. Why should I invest?

  90. I own some stock warrants. How do I exercise them?

  91. What's the difference between a regular option and an exotic option?

  92. I have several jobs. Can I contribute the maximum to multiple employer retirement plans?

  93. Can an option be exercised on the expiration date?

  94. What effect does a company's dividend reinvestment plan have on its stock price?

  95. I passed my Series 7 exam, but I terminated employment at my sponsoring firm before I received my license. Is my exam still valid?

  96. What types of accounts are available for forex trading?

  97. What are some of the features and benefits of SEP IRAs and Roth IRAs?

  98. Why do option volume quotes differ on different websites?

  99. Can a stop-loss order be used to protect a short sale transaction?

  100. Do I own a stock as of the trade date or the settlement date?

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