2. The seller of an DEF Jan 50 call is covered by all of the following EXCEPT:

A long 100 shares of DEF stock

B long an escrow receipt for 100 shares of DEF stock

C long 1 DEF Feb 40 Call

D long $5,000 of cash in the account

3. A customer is short an ABC Jan 60 Put. The position has a profit that the customer wishes to capture. The proper order to enter is a(n):

A opening purchase B closing purchase C opening sale D closing sale

4. An exercise of a listed stock option settles:

A the same day B the next business day C in 2 business days D in 5 business days

5. A customer sells short 100 shares of DEF stock at $63 and sells 1 DEF Oct 60 Put @ $6. The market rises to $68 and the put expires. The customer buys the stock in the market covering her short stock position. The gain or loss is: A $100 gain B $100 loss C $300 gain D $300 loss 6. A customer buys 100 ABC at $63 per share and buys 1 ABC Jan 60 Put @ $4. The stock subsequently falls to $52 and the customer exercises the put selling his stock. The customer has a:

A $300 loss B $400 loss C $700 loss D $1,100 loss