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FINRA Securities Industry Essentials Exam (SIE) SIE Question # 24 Topic 3 Discussion

FINRA Securities Industry Essentials Exam (SIE) SIE Question # 24 Topic 3 Discussion

SIE Exam Topic 3 Question 24 Discussion:
Question #: 24
Topic #: 3

A registered representative constructs a portfolio of stocks that replicates the S & P 500 Index (SPX). He then regularly buys and sells SPX options to profit off changes in implied volatility. This is an example of:


A.

day trading.


B.

Index rebalancing.


C.

active management.


D.

passive management.


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