Series 66 - 202 Practice Exam With Answers and Explanations
What is this product?
It is a printable PDF file of 202 Series 66 Exam practice questions complete with answers and explanations.
Why choose this product?
This product was written to teach the train of thought necessary to pass the Series 66 Exam. Beyond simple memorization, the exam requires that you possess critical thinking skills. These questions will challenge and train your critical thinking skills to easily handle whatever the exam throws at you.
Whats the big deal about the 2010 Edition?
The manager overseeing the development of this product took the exam himself recently to ensure that the content for this project would still be current. And it is.
Actual Sample Questions From This Exam:
1. GEP corporation issues a bond at par that is convertible to common stock at $50. What is the conversion ratio of the bond?
The conversion ratio is the number of shares a convertible bond can be converted to. To determine this, we take the par value and divide it by the conversion price.
1000/50 = 20…..means a ratio of 20:1
2. For a call option, which formula determines the intrinsic value of that option?
A. Option’s strike price minus Stock’s Market price
B. Stock’s Market price minus Option’s time value
C. Stock’s Market price plus Option’s Strike Price
D. Option’s time value plus Stock’s Market Price
Simply put, intrinsic value is the difference between the stock’s market price and the option’s strike price. So, a simple subtraction will give the intrinsic value.