Question

All of the following customers are considered to be long 100 shares of ABC stock EXCEPT:a.A a customer who has bought 100 ABC shares in a regular way trade that has not yet settled.b.B a customer who owns two ABC convertible bonds, convertible into 50 shares each, who has given irrevocable instructions to convert.c.C a customer who owns 1 ABC call contract.d.D a customer who owns 100 ABC warrants and has exercised those warrants.

Answer 1

Answer:

The answer is letter C.

Explanation:

A customer who owns 1 ABC call contract. A costumer is considered to be long stock oncethe stock has been purchased. The transaction does not have to settle for the costumer to be considered to be long. A customer is considered to be long  if he owns  options and warrants has exercised.