Experience the Quality With Free Series 3 License Exam Questions That Helps Candidates Pass

Futures P&L = 90 − 87 = +3. Add to cash sale 88 = 91. Hedgers must track both cash sale and futures gain/loss. Correct calculation is tested repeatedly in Series 3.

Futures are standardized, exchange-traded, and cleared daily. Forwards are OTC, customized, no clearinghouse. This is a common conceptual test point.

Change = 6¢ × 5,000 = $300. Correct answer = C ($300). Math precision is essential under exam time pressure.

A long put sets a floor price while retaining unlimited upside. This is the cleanest hedge for downside risk when holding inventory.

Exercising futures options converts into a futures position at the strike price. This contrasts with stock options (deliver stock). Understanding mechanics is essential on Series 3.