Question

QUESTION 28 Which of the following are TRUE statements regarding civil penalties that may be imposed for insider trading violations? 1. Civil penalties may be imposed only on registered persons II. The civil penalty may be up to three times the profit gained or the loss avoided on an illegal transaction III. A broker/dealer may be held liable if one of its registered reps was not properly supervised while committing an insider trading violacion, IV. The violation is defined as buying or selling securities while in possession of material nonpublic information land IV Lill, and MV Ill, and lll Il lil and IV QUESTION 29 Mr. Jones purchased 10 XYZ Oct 40 call options. Mr. Jones has purchased the obligation to sell XYZ at a fixed price the obligation to buy XYZ at a fixed price the right to sell XYZ at a fixed price the right to buy XYZ at a fixed price

Answer 1

Answer to question no 28

Statement 1, II, AND III are correct as per civil penalty insider trading rules

Answer to question no 29

A Call Option gives the buyer the right, but not the obligation to buy the underlying security at the exercise price, at or within a specified time. A Put Option gives the buyer the right, but not the obligation to sell the underlying security at the exercise price, at or within a specified time

Therfore answer is d ie Mr John has purchased the right to buy XYZ at fixed price