Series 42

Registered Options Representative License Course

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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