Series 42

Registered Options Representative License Course


Series 42 Options Rep Exam

The series 42 exam consists of 50 multiple choice questions. each person taking this licensing test has 90 minutes to complete the exam. 70% is the required passing grade.

The Series 42 exam carries a prerequisite licensing requirement. Each person must have taken, passed and currently hold a Series 62 or Series 72 License.

Topics of the Exam Covered Include:

  • Option Contract Understanding - Call Options, Put Options and the strategies with a full understanding of the risks involved for all options trading

  • Option Contract Components - Strike Price, Expiration Months, Options Clearing Corp Settlements and Rules (OCC)

  • Trading Markets and it’s effect on Option Premiums and marketability

  • Proper Customer Trading Transactions

  • Trade Volume Recognition and Advertisements

  • New Options Customer Procedures and Risk Disclosure Documents

  • Equity and Debt Options Trading - Position Limits, Understanding Call and Put Option Risks

  • Maintaining Customers Records - Trading Transactions, Retaining and Record Keeping

  • Understanding Trade and Settlement Dates, and Handling Customer Confirmations

Visit FINRA For the complete Series 42 Exam Outline