Canadian Securities Course (CSC) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Canadian Securities Course Exam with our comprehensive practice test. Explore flashcards and multiple-choice questions, each with detailed hints and explanations. Prepare for your CSC exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the main characteristic of LT Equity Anticipation options?

Short-term validity
Identical risk/reward profile to regular options
Unable to profit
Restricted to 5 months

The correct answer is: Identical risk/reward profile to regular options

LT Equity Anticipation options inherently have an identical risk/reward profile to regular options. This means that they have the same potential for both gains and losses as regular options. Option A and D are incorrect because they refer to specific limitations or timeliness of LT Equity Anticipation options, which are not defining characteristics. Option C is incorrect because LT Equity Anticipation options, like all options, have the potential for profits depending on the market conditions and the chosen strategy.