I am applying for Tdameritrade margin test and looking for some feedback on my answers. I've been trading options for awhile and want to increase my buying power. Attached is my responses. Can anyone give me some feedback on my responses. Thank you for the assistances.
TOS Margin Test.
- Thread starter scott park
- Start date
My files are safe and I use two anti-virus programs.
Can I get some feedback on these following questions, please?
1. Which of the following is the same synthetic position as long stock short call:
Answer (a)
a. Short put
b. Long call
c. Short call
d. Long put
8. You have established the following position:
Short 1 ABC 145 Put @ 4
If the delta of the put is 0.50 and the gamma is 0.04, what would the new delta be if ABC decreases from 145 to 144?
Answer (d)
a. 50
b. 46
c. 53
d. 54
11. Which of the following is true regarding the shorting of options in a risk based account?
Answer (b)
a. there is no limit to the number of total (units that can be shorted.
b. Clearing firm may require additional margin beyond the initial margin requirement.
c. The OCC does not consider the positions of all accounts at a clearing firm when assessing risk to that firm
d. Converting naked options into vertial spreads will not reduce risk
16. You have established the following positions:
Long 500 XYZ Nov 1240 Calls @ 5
Long 500 XYZ Nov 1205 Puts @ 6
Answer (e)
What is the traditional margin requirement?
a. $500,000
b. $600,000
c. $550,000
d. $700,000
e. None of the above
17. Which one of the following is NOT permitted if your account is restricted to "Liquidation orders only"?
Answer (b)
a. Depositing additional funds or securities into the account
b. Placing an order to open a naked option position
c. Buying to close an uncovered position
d. Selling to close a long position
e. None of the above
18. Stock XYZ is at 100. If you are long the Jan 100 put and short Dec 110 put, you are which of the following?
answer (a)
a. Long delta, short vega
b. Short delta, short vega
c. Long delta, long vega
d. Short delta, long vega
1. Which of the following is the same synthetic position as long stock short call:
Answer (a)
a. Short put
b. Long call
c. Short call
d. Long put
8. You have established the following position:
Short 1 ABC 145 Put @ 4
If the delta of the put is 0.50 and the gamma is 0.04, what would the new delta be if ABC decreases from 145 to 144?
Answer (d)
a. 50
b. 46
c. 53
d. 54
11. Which of the following is true regarding the shorting of options in a risk based account?
Answer (b)
a. there is no limit to the number of total (units that can be shorted.
b. Clearing firm may require additional margin beyond the initial margin requirement.
c. The OCC does not consider the positions of all accounts at a clearing firm when assessing risk to that firm
d. Converting naked options into vertial spreads will not reduce risk
16. You have established the following positions:
Long 500 XYZ Nov 1240 Calls @ 5
Long 500 XYZ Nov 1205 Puts @ 6
Answer (e)
What is the traditional margin requirement?
a. $500,000
b. $600,000
c. $550,000
d. $700,000
e. None of the above
17. Which one of the following is NOT permitted if your account is restricted to "Liquidation orders only"?
Answer (b)
a. Depositing additional funds or securities into the account
b. Placing an order to open a naked option position
c. Buying to close an uncovered position
d. Selling to close a long position
e. None of the above
18. Stock XYZ is at 100. If you are long the Jan 100 put and short Dec 110 put, you are which of the following?
answer (a)
a. Long delta, short vega
b. Short delta, short vega
c. Long delta, long vega
d. Short delta, long vega
Your buying power is limited to cash in your account when it comes to options with TD Ameritrade - and I assume all brokers. $2000 account = $2000 or less buying power when it comes to options.
I welcome any comments on these questions below:
2. Stock XYZ is at 100. you are long the Jan 100 put and short the Dec 110 put. Are you:
a. Long delta, short vega
b. short delta, short vega
c. Long delta, long vega
d. Short delta, long vega.
Answer a:
8. You established the following position:
Long 100 ABCD 150 Call
Long 100 ABCD 150 Put
If the price of ABCD is $150 at expiration, what is the resulting ABCD position in your account on the business day following expiration:
a. Flat or no position in ABCD
b. Long 100,000 shares of ABCD
c. Short 100,000 shares of ABCD
d. Both B and C
Answer: a
10. You establish the following position:
short 100 ABCD 150 Call
short 100 ABCD 150 Put
If the price of ABCD is $150 at expiration, what is the resulting ABCD position in your account on the business day following expiration?
a. Flat or not position
b. Long 100,000 shares of ABCD
c. short 100,000 shares of ABCD
d. Both B and C
e. Unable to determine.
Answer: e
19. You establish the following position:
Short 1 ABCD 320 Put @6
If the delta of the put is .050 and the gamm is 0.03 what would the new delta be if ABCD decreases from 321 to 320?
a. 0.47
b. 0.50
c. 0.53
d. 0.56
e. 0.60
Answer: a
2. Stock XYZ is at 100. you are long the Jan 100 put and short the Dec 110 put. Are you:
a. Long delta, short vega
b. short delta, short vega
c. Long delta, long vega
d. Short delta, long vega.
Answer a:
8. You established the following position:
Long 100 ABCD 150 Call
Long 100 ABCD 150 Put
If the price of ABCD is $150 at expiration, what is the resulting ABCD position in your account on the business day following expiration:
a. Flat or no position in ABCD
b. Long 100,000 shares of ABCD
c. Short 100,000 shares of ABCD
d. Both B and C
Answer: a
10. You establish the following position:
short 100 ABCD 150 Call
short 100 ABCD 150 Put
If the price of ABCD is $150 at expiration, what is the resulting ABCD position in your account on the business day following expiration?
a. Flat or not position
b. Long 100,000 shares of ABCD
c. short 100,000 shares of ABCD
d. Both B and C
e. Unable to determine.
Answer: e
19. You establish the following position:
Short 1 ABCD 320 Put @6
If the delta of the put is .050 and the gamm is 0.03 what would the new delta be if ABCD decreases from 321 to 320?
a. 0.47
b. 0.50
c. 0.53
d. 0.56
e. 0.60
Answer: a