A registered representative (RR) at a member firm is the subject of a statutory disqualification. Which of the following statements is true?

• A.The RR is prohibited from soliciting business but is permitted to accept unsolicited orders.
• B.The RR is prohibited from any association or employment with a member firm unless he obtains a waiver.
• C.The RR is prohibited from employment by a member firm in any registered capacity but is permitted to be employed in an unregistered capacity.
• D.A statutory disqualification, although reportable to CRD, does not affect employment in the securities industry.

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Which of the following transactions is most profitable if executed prior to a significant rise in a company's stock price?

• A.Buying a put option
• B.Buying a call option
• C.Selling a put option
• D.Selling a call option

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In a rising interest rate environment, which of the following statements is true regarding the price of fixed-rate corporate bonds?

• A.Their price will remain constant.
• B.Their price will revert to par value.
• C.Their price will appreciate in value.
• D.Their price will depreciate in value.

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Which of the following products is redeemable at net asset value (NAV)?

• A.Corporate stock
• B.Municipal bonds
• C.Options contracts
• D.Open-end mutual funds

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Under FINRA rules, which of the following activities is not considered an outside business activity (OBA)?

• A.Selling real estate
• B.Selling health insurance
• C.Professionally refereeing athletic events
• D.Passively investing in a multifamily house for rental purposes

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