Wiley Series 3 Exam Review 2016 + Test Bank: The National Commodities Futures Examination(Wiley FINRA)

The go-to guide for the Series 3, with practice, examples, strategies, and more Wiley Series 3 Exam Review 2016 + Test Bank is a comprehensive study guide for the FINRA Series 3 exam, which qualifies candidates to sell commodities or futures contracts. Created by the experts at The Securities Institute of America, Inc., this useful guide provides the information and practice you need to ace the exam. The book is designed to help you build and fine-tune your knowledge of each subject area covered, giving you the confidence you need to perform at your best. Work through review questions, study examples, and develop a strategy for the exam itself. You'll even find guidance toward effective studying methods that allow you to enter the exam fully mentally prepared. The National Commodities Futures Examination (Series 3) tests your knowledge of rules and statutes applicable to the markets. This intense two and a half hour test is a must for aspiring financial professionals, as passing means registration to conduct business in commodity futures and options. This book provides a valuable opportunity to test your knowledge and bring weak areas up to par, with complete coverage of exam topics. Review practice questions taken from each subject area covered by the exam Study hundreds of examples to clarify complex concepts and techniques Gain insight into the best strategies and tips for taking the Series 3 Develop an effective study plan to stay focused and keep stress to a minimum Although the exam is entry-level, the stakes are high and the subject matter is complex. Don't muddle through it alone and assume you're prepared – this guide helps you be sure. For the Series 3 candidate serious about success, Wiley Series 3 Exam Review 2016 is your ticket to passing with flying colors – the first time.

Table of Contents:
ABOUT THE SERIES 3 EXAM ix ABOUT THIS BOOK xiii ABOUT THE TEST BANK xv ABOUT THE SECURITIES INSTITUTE OF AMERICA xvii CHAPTER 1 FUTURES AND FORWARDS 1 The Spot Market 1 Forward Contracts 2 Futures 3 Trading Futures on the Floor of the Exchange 4 Clearinghouse 5 Clearing Member Margin Calculations 7 Basis Grade 8 Pretest 11 CHAPTER 2 TRADING COMMODITY FUTURES 15 Types of Orders 15 Market Orders 16 Buy Limit Orders 16 Sell Limit Orders 16 Stop Orders/Stop Loss Orders 17 Buy Stop Orders 18 Sell Stop Orders 18 Stop Limit Orders 19 Other Types of Orders 19 Pretest 29 CHAPTER 3 FUTURES PRICING 31 Contract Sizes and Pricing 31 U.S. Treasury Futures 35 Stock Index Futures 36 Index Future Settlement 37 Single Stock Futures 37 Foreign Currency Futures 38 Pretest 41 CHAPTER 4 PRICE FORECASTING 45 Futures Market Pricing Structure 45 Agricultural Futures Pricing 48 Government Agricultural Programs 49 Crop Year 49 Technical Analysis 50 Pretest 57 CHAPTER 5 SPECULATION AND HEDGING 61 Speculation 61 Margin 64 Maintenance Margin 66 Changes to the Margin Requirement 70 Hedging 71 How to Manage an Imperfect Hedge 75 A Change in Basis Price 76 Hedging Financial Risks 79 Pretest 87 CHAPTER 6 COMMODITY FUTURES OPTIONS AND COMMODITY FUTURES SPREADS 91 Option Classifi cation 91 Option Classes 92 Option Series 92 Bullish vs. Bearish 92 Possible Outcomes for an Option 93 Managing an Option Position 94 Buying Calls 94 Selling Calls 96 Buying Puts 98 Selling Puts 99 Option Premiums 101 Intrinsic Value and Time Value 103 Multiple Option Positions and Strategies 104 Long Straddles 104 Short Straddles 107 Spreads 110 Analyzing Spreads/Price Spreads 111 Bull Call Spreads/Debit Call Spreads 111 Spread Premiums Bull Call Spread 113 Bear Call Spreads/Credit Call Spreads 114 Spread Premiums Bear Call Spread 116 Bear Put Spreads/Debit Put Spreads 117 Spread Premiums Bear Put Spread 118 Bull Put Spreads/Credit Put Spreads 119 Spread Premiums Bull Put Spread 120 Synthetic Risk and Reward 121 Delta 123 Spreading Futures Contracts 123 Pretest 127 CHAPTER 7 CFTC & NFA AND REGULATIONS 131 The Commodity Exchange Act of 1936 131 Futures Commission Merchant 133 Introducing Broker 134 Commodity Pool Operator 134 Commodity Trading Adviser 136 Risk Disclosure Documents 136 Additional Disclosures by CTAs and CPOs 142 Customer Accounts 143 Arbitration 148 The CFTC Reparation Process 149 Written Communication with the Public 154 Pretest 159 ANSWER KEYS 163 GLOSSARY OF EXAM TERMS 171 INDEX 185