Commsec Options - Lvl 4 Queries

[filar95956]

Hi

I currently have a Commec account and am trying to have a Level 4 Options trading account to get started in vertical spreads, had been trying to complete the 10 question but having issues. I am sure I have completed it correctly but it kept mentioning an error and it's driving crazy. Was hoping if you throw in some pointers and that will be highly appreciated.

Screenshot 1 - https://snipboard.io/HLrjba.jpg

Screenshot 2 - https://snipboard.io/JisuMm.jpg

Screenshot 3 - https://snipboard.io/uhUS4g.jpg

 

[frugal.rock]

https://www.google.com/url?q=https://www.asx.com.au/documents/products/Options_Simple_Guide.pdf&sa=U&ved=2ahUKEwjKlcbfrO_9AhWZm1YBHWOAAtQQFnoECAAQAw&usg=AOvVaw1WV9aF7hY6Q6BXup5y5WPr

 

[Value Collector]

Hi

I currently have a Commec account and am trying to have a Level 4 Options trading account to get started in vertical spreads, had been trying to complete the 10 question but having issues. I am sure I have completed it correctly but it kept mentioning an error and it's driving crazy. Was hoping if you throw in some pointers and that will be highly appreciated.

Screenshot 1 - https://snipboard.io/HLrjba.jpg

Screenshot 2 - https://snipboard.io/JisuMm.jpg

Screenshot 3 - https://snipboard.io/uhUS4g.jpg

Is question 6 correct?

 

[IvoryWolf]

Is question 6 correct?

With respect to question 6, options traders think immediately as to whether the spread is a debit spread (money out of the trader's pocket immediately) or a credit spread (money intended to be received by the trader should the trade go in their favour). In the case of the credit spread, a margin would be required to be lodged until the position is either closed out or the options expire or are exercised.

 

[test1234]

Is answer no.1 correct

 

[IvoryWolf]

Is answer no.1 correct

Always think back to the definition of an option @test1234. In the case of a call option, the definition is the 'right' to buy at a specified price for the holder. So the seller has an 'obligation' to 'provide' at a specified price should they be exercised/assigned.

 

[test1234]

Always think back to the definition of an option @test1234. In the case of a call option, the definition is the 'right' to buy at a specified price for the holder. So the seller has an 'obligation'

Duh. How did I mess that up!! Lucky I passed the test years ago - probably would have failed it today.