If an investor is long several shares of a stock, how may the investor use options to increase the overall rate of return on the portfolio?

	A.	Buy puts
	B.	Sell covered calls
	C.	Sell covered puts
	D.	Buy calls

An investor buys a municipal bond at 130 with 20 years to maturity in the secondary market. If the investor sells the bond at 105 in 6 years, what is the gain or loss?

	A.	$250 loss
	B.	$160 loss
	C.	$160 gain
	D.	$150 loss

Martina Martin is new to investing but has determined that her primary objective is making sure that she is prepared for retirement. Which of the following is the MOST important factor for you to consider when helping her set up her investment portfolio?

	A.	Net worth
	B.	Education level
	C.	Previous investment history
	D.	Age

If one of your clients wants to order municipal securities that you believe to be unsuitable for her investment objectives, what should you do?

	A.	Execute the order as long as you mark the order ticket "unsolicited"
	B.	You must refuse the order unless the client changes her investment objectives
	C.	You must obtain the permission of the firm's compliance officer before executing the order
	D.	You may only execute the order with prior permission of a principal of the firm

An investor deposits $2,000 per month into a mutual fund for 5 months.The purchase price each month is as follows:

Month 1: $20

Month 2: $25

Month 3: $50

Month 4: $40

Month 5: $50

What is the average cost per share paid by the investor?

	A.	$32.26
	B.	$37.00
	C.	$35.73
	D.	$31.39

TUV balanced fund has a net asset value(NAV) of $21.40 and a public offering price(POP) of $22.60. What is the sales charge?

	A.	5.15%
	B.	5.3%
	C.	5.6%
	D.	5.66%

An investor who is long a call option will realise a profit if exercising the option when the underlying stock price is:

	A.	Above the strike price
	B.	Above the strike price plus the premium paid
	C.	Below the strike price
	D.	Below the strike price minus the premium paid