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Series 7 Flashcards: Calculate Option Profit And Loss

Study Calculate Option Profit And Loss in Series 7 with focused flashcards that help you recognize the idea, recall the key rule, and apply it in practice-style prompts.

QUESTION

What is the total dollar P/L for 11 listed option contract given per-share P/L?

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ANSWER

Total P/L=(per-share P/L)×100\text{Total P/L} = (\text{per-share P/L})\times 100. Each option contract covers 100 shares, so total profit or loss scales by multiplying per-share amount by 100.

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Series 7: Function 3: Provides Information and Recommendations

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What this deck covers

This deck focuses on Calculate Option Profit And Loss, giving you a quick way to review the definitions, rules, and examples that matter most for Series 7.

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Work through these flashcards in short sessions. Try to answer each prompt before flipping the card, then revisit any cards you miss until the explanation feels automatic.

Practice questions

1 of 20Practice questions for this set
A speculator buys 3 XYZ Jul 200 calls at $8 when the market price of XYZ is $199. If the price of XYZ stock falls to $190 at expiration, what is the investor's total loss?
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