PDA

View Full Version : Series 7 - Derivatives - Tricks and Study Tips


lwelch
Aug 23, 2008, 07:31 PM
I am looking for any tricks, easy charts, pneumonic devices etc. for derivatives for the series 7 exam. I have seen a few but I am just looking for some insight from others.


Calls
Puts
Spreads
Straddles


I have a fairly good reference now but I am open to suggestions from people here.

gSeries7
Dec 10, 2009, 07:50 PM
This will get the correct answer every time:

buy + call = opportunity to buy (bullish); cost basis, unlimited gain; protect short position
buy + put = opportunity to sell (bearish); sale proceeds, strike gain; protect long position
-----------------------------------------------------------------------------------------------------
sell + call = forced to sell (bearish); unlimited loss; sale proceeds
sell + put = forced to buy (bullish); cost basis

Top two always pays the premium; bottom two always earns the premium

memon
Mar 12, 2010, 09:15 AM
d/dx=3^2x^2+x