Wiley FINRA Series 3 Exam Review 2017: The National Commodities Futures Examination

The go-to guide for the Series 3, with practice, examples, strategies, and more Wiley Series 3 Exam Review 2017 + 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 2017 is your ticket to passing with flying colors – the first time.

Table of Contents:
About the Series 3 Exam xi About This Book xv About the Test Bank xvii About the Securities Institute of America xix 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 39 Pretest 41 Chapter 4 Price Forecasting 45 Futures Market Pricing Structure 45 Agricultural Futures Pricing 48 Supply and Demand Elasticity 49 Government Agricultural Programs 49 Crop Year 50 Economic Policy 50 Tools of the Federal Reserve Board 51 Interest Rates 51 Reserve Requirement 52 Changing the Discount Rate 53 Federal Open Market Committee 53 Money Supply 53 Disintermediation 54 Moral Suasion 54 Fiscal Policy 55 International Monetary Considerations 56 London Interbank Offered Rate / LIBOR 57 Yield Curve Analysis 57 Technical Analysis 59 Pretest 65 Chapter 5 Speculation and Hedging 69 Speculation 69 Margin 72 Maintenance Margin 74 Changes to the Margin Requirement 78 Other Forms of Margin Deposits 79 Hedging 81 How to Manage an Imperfect Hedge 84 A Change in Basis Price 85 Hedging Financial Risks 88 Pretest 97 Chapter 6 Commodity Futures Options and Commodity Futures Spreads 101 Option Classification 101 Option Classes 102 Option Series 102 Bullish vs. Bearish 102 Possible Outcomes for an Option 103 Managing an Option Position 104 Buying Calls 104 Selling Calls 106 Buying Puts 108 Selling Puts 109 Option Premiums 111 Intrinsic Value and Time Value 113 Multiple Option Positions and Strategies 114 Long Straddles 114 Short Straddles 117 Spreads 120 Analyzing Spreads/Price Spreads 121 Bull Call Spreads/Debit Call Spreads 121 Spread Premiums Bull Call Spread 123 Bear Call Spreads/Credit Call Spreads 124 Spread Premiums Bear Call Spread 126 Bear Put Spreads/Debit Put Spreads 127 Spread Premiums Bear Put Spread 128 Bull Put Spreads/Credit Put Spreads 129 Spread Premiums Bull Put Spread 130 Synthetic Risk and Reward 131 Delta 133 Spreading Futures Contracts 133 Spreading Treasury Futures 136 Pretest 137 Chapter 7 CFTC & NFA and Regulations 141 The Commodity Exchange Act of 1936 141 Futures Commission Merchant 143 Introducing Broker 144 Commodity Pool Operator 144 Commodity Trading Adviser 146 Risk Disclosure Documents 146 Additional Disclosures by CTAs and CPOs 152 Customer Accounts 153 Arbitration 158 The CFTC Reparation Process 159 Written Communication with the Public 164 Pretest 169 Answer Keys 173 Glossary of Exam Terms 181 Index 195