Series56 question:

[zbojnik]

Answer: C. Contingent Voting Rights

 

[zbojnik]

Doesnt the passperfect say its $100?

Members or permit holders are expected not to give gratuities or
compensation in any one year in excess of $____ to any exchange
Employee over the course of a year without consent of the Exchange.

A. $25
B. $50
C. $100
D. $200

 

[zbojnik]

Customer A is displaying a 2.40 bid, which is NBBO, for 10 of the XYZ Jan 50 Calls. Several minutes later, Customer B order enters the market also displaying a 2.40 bid, but for 20 contracts.
Subsequently, an order enters the market to sell 15 of the XYZ Jan 50 Calls at 2.40. Customer A and Customer B are the only market participants with a 2.40 bid. How is the order distributed?

Answer: Customer A gets 10 contracts, Customer B gets 5 contracts

I thought it goes to whoever has the biggest size first. So customer B would get all 15. Why not?

 

[jhnovick]

Yes, $100 is the gift limit.

 

[heech]

Quote from zbojnik:

Customer A is displaying a 2.40 bid, which is NBBO, for 10 of the XYZ Jan 50 Calls. Several minutes later, Customer B order enters the market also displaying a 2.40 bid, but for 20 contracts.
Subsequently, an order enters the market to sell 15 of the XYZ Jan 50 Calls at 2.40. Customer A and Customer B are the only market participants with a 2.40 bid. How is the order distributed?

Answer: Customer A gets 10 contracts, Customer B gets 5 contracts

I thought it goes to whoever has the biggest size first. So customer B would get all 15. Why not?

Equity markets are FIFO on orders. This is why HFT play so many games with order cancellation. They want to be first-in at every price level... but not if prices are actually moving.

 

[jhnovick]

If they are at the same price they are filled FIFO. So A would get his full 10 and 5 would get at $2.40. Since A's order has been cleared out B now moves to the front of the at the $2.40 price point. The balance of B's order would be filled at $2.40 as soon someone offers at $2.40 or better if there is supply at the better level.

 

[zbojnik]

Quote from zbojnik:

Doesnt the passperfect say its $100?

Members or permit holders are expected not to give gratuities or
compensation in any one year in excess of $____ to any exchange
Employee over the course of a year without consent of the Exchange.

A. $25
B. $50
C. $100
D. $200

Ah... Trick question. I dont think this is in passperfect... (Correct me if Im wrong.) The correct answer is: B.$50.

$50 to an EXCHANGE EMPLOYEE.
$100 to an EMPLOYEE OF A MEMBER FIRM.

 

[zbojnik]

Quote from jhnovick:

If they are at the same price they are filled FIFO. So A would get his full 10 and 5 would get at $2.40. Since A's order has been cleared out B now moves to the front of the at the $2.40 price point. The balance of B's order would be filled at $2.40 as soon someone offers at $2.40 or better if there is supply at the better level.

Ok, got it now. Thanks.

 

[zbojnik]

Anyone take the CBOE practice exams? Are they comparible to the actual test? I got 90% on it. Do you think I can pass the real test now?

 

[Alpha Trader]

One more question:
If you pass the exam, do you actually receive a physical certificate in the mail?

This is such an irrelevant test for me, as all I need it for is to trade prop. 90% of the content will not be required in the real world and the passing of this test provides no other use in the financial world, if you had to try and utilize it.

I'd rather pay the CBOE $200 every 2 year for doing some "Continueing Education" than have to do this exam. They get their money and I don't have to waste my time "learning" something that I will never need/use!