A customer wants to place a first options order today, before the account paperwork is reviewed. What does Cboe Rule 9.1(a) say?Cboe Rule 9.1(a). Outline: FINRA Series 4 Content Outline (2021), Function 1, task 1.1.
A married couple applies for a joint options account. Whose background and financial information must the firm seek under Cboe Rule 9.1(b)(1)?Cboe Rule 9.1(b). Outline: FINRA Series 4 Content Outline (2021), Function 1, task 1.1.
A new options customer declines to give his net worth. What does Cboe Rule 9.1(b)(2) require the firm to do about the refusal?Cboe Rule 9.1(b). Outline: FINRA Series 4 Content Outline (2021), Function 1, task 1.1.
A principal reviews a discretionary account. Which pattern does SEA Rule 15c1-7 call manipulative or deceptive?SEA Rule 15c1-7, 17 CFR 240.15c1-7. Outline: FINRA Series 4 Content Outline (2021), Function 1, task 1.4.
By when must a customer receive the special disclosure statement on portfolio margining and return the signed acknowledgement?Cboe Rule 10.4(c). Outline: FINRA Series 4 Content Outline (2021), Function 1, task 1.2.
Show all 53 questions (48 more)
Opening new options accounts, continued
The Options Clearing Corporation amends the options disclosure document. By when must a customer who trades the affected kind of option be given the amendment?FINRA Rule 2360(b)(11). Outline: FINRA Series 4 Content Outline (2021), Function 1, task 1.2.
When does SEA Rule 10b-16 require the first written disclosure of the terms on which a firm charges interest on margin credit?SEA Rule 10b-16, 17 CFR 240.10b-16. Outline: FINRA Series 4 Content Outline (2021), Function 1, task 1.2.
Which customers may use a portfolio margin account under Cboe Rule 10.4(c)?Cboe Rule 10.4(c). Outline: FINRA Series 4 Content Outline (2021), Function 1, task 1.2.
Who may give the written approval of a customer's account for options trading under FINRA Rule 2360(b)(16)?FINRA Rule 2360(b)(16). Outline: FINRA Series 4 Content Outline (2021), Function 1, task 1.4.
Options account activities 11
A customer buys one listed call with 14 months to expiration for a premium of 8. What is the least margin Cboe Rule 10.3 requires?Cboe Rule 10.3. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.2.
A customer is short one XYZ 40 put. Which long position in the same account makes the put covered under Cboe Rule 1.1?Cboe Rule 1.1. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.2.
A customer owns 100 shares of XYZ bought at 62, buys one XYZ 60 put for 2 and writes one XYZ 70 call for 2.50. What is the most the position can gain?The Options Industry Council, Collar. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.3.
A customer writes one ABC 50 call for 4 and buys one ABC 55 call for 1.50. At what stock price does the position break even at expiration?The Options Industry Council, Bear Call Spread. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.3.
A customer writes one DEF 40 call for 3 and one DEF 40 put for 2. Between which two stock prices at expiration does the position make money?The Options Industry Council, Short Straddle. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.3.
A firm's quarterly securities count turns up a short security difference that stays unresolved. By when must SEA Rule 15c3-3(h) have it bought in?SEA Rule 15c3-3(h), 17 CFR 240.15c3-3. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.3.
During a partial tender offer, how many shares may a customer tender under SEA Rule 14e-4?SEA Rule 14e-4, 17 CFR 240.14e-4. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.3.
For two options to be margined as a spread under Cboe Rule 10.3, how must the expiration of the short option compare with that of the long option?Cboe Rule 10.3(a). Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.2.
What does Cboe Rule 9.17 count as an options-related complaint?Cboe Rule 9.17. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.4.
When is a recommendation to a retail customer tested against the best interest standard of SEA Rule 15l-1?SEA Rule 15l-1, 17 CFR 240.15l-1. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.1.
Which of these must the central file of options-related complaints show for each complaint, at a minimum, under Cboe Rule 9.17?Cboe Rule 9.17. Outline: FINRA Series 4 Content Outline (2021), Function 2, task 2.4.
General options trading 11
A customer holds a call and enters an order to sell the underlying stock. When is the customer deemed to own the stock under Rule 200(b) of Regulation SHO?Regulation SHO, 17 CFR 242.200(b). Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.2.
A customer's own limit orders are entered on both sides of the market all day, as a dealer's quotes would be. Why does Cboe Rule 8.20 bar a member from entering them as priority customer orders?Cboe Rule 8.20. Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.2.
A firm lets a customer send orders to an options exchange under the firm's identifier. Which pre-trade control does SEA Rule 15c3-5 require?SEA Rule 15c3-5(c), 17 CFR 240.15c3-5. Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.4.
After a customer exercises a call, what must the member require of the customer under Cboe Rule 6.22?Cboe Rule 6.22. Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.1.
How must market access controls guard against erroneous orders under SEA Rule 15c3-5?SEA Rule 15c3-5(c), 17 CFR 240.15c3-5. Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.4.
In Cboe's rules, what is an opening writing transaction?Cboe Rule 1.1. Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.2.
Under Cboe Rule 8.43, at what position size must a member report a customer's name, address and tax identification number to the exchange?Cboe Rule 8.43(a). Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.1.
Under SEA Rule 10b5-1, when is a trade made on the basis of material nonpublic information?SEA Rule 10b5-1(b), 17 CFR 240.10b5-1. Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.2.
What does Cboe Rule 8.10 require of every Trading Permit Holder about material, nonpublic information?Cboe Rule 8.10. Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.2.
What is the smallest originating order that may be entered on Cboe as a qualified contingent cross in standard option contracts?Cboe Rule 5.6, Qualified Contingent Cross. Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.2.
When may a member make an opening transaction that it has reason to believe would put a customer over the position limit?Cboe Rule 8.30. Outline: FINRA Series 4 Content Outline (2021), Function 3, task 3.1.
Options communications 4
A firm's sales piece describes an options program. What must it disclose about the program under Cboe Rule 9.15(h)?Cboe Rule 9.15(h). Outline: FINRA Series 4 Content Outline (2021), Function 4, task 4.2.
A principal reviews outgoing options correspondence. Must a Registered Options Principal approve each piece before it is sent, under Cboe Rule 9.15(b)?Cboe Rule 9.15(b). Outline: FINRA Series 4 Content Outline (2021), Function 4, task 4.3.
A retail communication shows a projected annualized return on an options strategy. On how short an experience may the figure NOT be based, under Cboe Rule 9.15(f)?Cboe Rule 9.15(f). Outline: FINRA Series 4 Content Outline (2021), Function 4, task 4.2.
On an outbound sales call, what must the caller disclose promptly under Cboe Rule 9.18(b), besides who is calling and how the caller can be reached?Cboe Rule 9.18(b). Outline: FINRA Series 4 Content Outline (2021), Function 4, task 4.1.
Practices and regulatory requirements 5
A firm finds that securities certificates are missing and has reason to believe a crime was involved. How soon must it report under SEA Rule 17f-1?SEA Rule 17f-1, 17 CFR 240.17f-1. Outline: FINRA Series 4 Content Outline (2021), Function 5, task 5.2.
A firm that carries margin accounts keeps a daily record of every case in which margin must be obtained. How long must the record be preserved under Cboe Rule 10.11?Cboe Rule 10.11. Outline: FINRA Series 4 Content Outline (2021), Function 5, task 5.2.
A firm wants to mail a customer's confirmations in care of the customer's accountant. When does Cboe Rule 9.8 allow it?Cboe Rule 9.8. Outline: FINRA Series 4 Content Outline (2021), Function 5, task 5.1.
How often must a member send a statement to an options customer whose account had an entry during the month?FINRA Rule 2360(b)(15). Outline: FINRA Series 4 Content Outline (2021), Function 5, task 5.2.
Whom must a member name to FINRA on Schedule A of Form BD as its chief compliance officer under Rule 3130(a)?FINRA Rule 3130(a). Outline: FINRA Series 4 Content Outline (2021), Function 5, task 5.1.
Associated persons and personnel 13
A firm that lost its only Registered Options Principal may still do one kind of options business with the public while it replaces the principal. Which?FINRA Rule 1220, Supplementary Material .03. Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.2.
A member wants to start an options business with the public. How many Registered Options Principals must it have at the least?FINRA Rule 1220(a)(8). Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.2.
A new hire at a Cboe Trading Permit Holder organization will accept options orders from public customers. Which examinations does Cboe Rule 3.37(b) require?Cboe Rule 3.37(b). Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.1.
A representative promises a nervous options customer to make up any loss in the account. Which rule does that break?Cboe Rule 9.12(a); FINRA Rule 2150(b). Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.4.
A representative registers with FINRA for the first time in March 2026. By when must she complete her first Regulatory Element under Rule 1240(a)(1)?FINRA Rule 1240(a). Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.2.
A representative tells her firm in writing of a private securities transaction for which she will receive no compensation. What must the firm do?FINRA Rule 3280(d). Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.2.
A Trading Permit Holder fines one of its own representatives $3,000 for breaking firm policy. Must it notify the Exchange under Cboe Rule 8.8?Cboe Rule 8.8. Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.2.
How often must a member evaluate its training needs and write a training plan for the Firm Element?FINRA Rule 1240(b). Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.2.
Under Cboe Rule 3.36(b), which of these people must be designated and qualified as a Registered Options Principal?Cboe Rule 3.36. Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.2.
Under Cboe Rule 8.19, may a Trading Permit Holder act as a market-maker and as a floor broker in the same options on the same business day?Cboe Rule 8.19. Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.3.
What must a Trading Permit Holder do when another exchange disciplines one of its associated persons, under Cboe Rule 8.8?Cboe Rule 8.8. Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.2.
Which registration must a candidate hold before registering as a Registered Options Principal under FINRA Rule 1220(a)(8)?FINRA Rule 1220(a)(8). Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.2.
Who may halt trading in a security on Cboe under Rule 5.20(a)?Cboe Rule 5.20. Outline: FINRA Series 4 Content Outline (2021), Function 6, task 6.3.
How this list was compiled: Our own questions, written to FINRA's Registered Options Principal Qualification Examination (Series 4) Content Outline, marked 2021 (https://www.finra.org/sites/default/files/Series_4_Outline.pdf, read 2026-10-14): Function 1 supervise the opening of new options accounts 21 of 125 questions, Function 2 supervise options account activities 25, Function 3 supervise general options trading 30, Function 4 supervise options communications 9, Function 5 implement practices and adhere to regulatory requirements 12, Function 6 supervise associated persons and personnel management activities 28. The bank holds 9, 11, 11, 4, 5 and 13. Every fact was read on 2026-10-14 in the public text the question names: the Cboe Exchange rule book (https://cdn.cboe.com/resources/regulation/rule_book/C1_Exchange_Rule_Book.pdf, marked updated as of October 12, 2026), FINRA Rules 1220, 1240, 2150, 2360, 3130 and 3280 on finra.org, SEC rules and Regulation SHO on ecfr.gov, and the strategy pages of The Options Industry Council (optionseducation.org), which the outline lists among its references. Licence: Questions, choices and explanations are original work of this site.
How it works
This Series 4 practice test asks 53 questions of our own on supervising options accounts, trading, communications and personnel, each naming its rule. Unofficial: not affiliated with, endorsed by or sponsored by FINRA or Cboe. Not investment advice.
Read the full guide
Six functions, in FINRA's shares
FINRA's outline gives the Series 4 125 scored questions: 21 on opening options accounts, 25 on account activities, 30 on options trading, 9 on communications, 12 on practices and records, and 28 on personnel. This bank holds 9, 11, 11, 4, 5 and 13.
Cboe and FINRA rules, side by side
The outline cites Cboe's rule book beside FINRA Rules 2360 and 2220. Questions name the Cboe rule where its text was read, and the SEC rules on market access, short sales and tender offers.
Series 4 or Series 9
The Series 9 is the options module of the sales supervisor exams. The Series 4 is the full options principal exam, the one a firm's Registered Options Principal passes.
A listed option with more than nine months to run may be margined at 75 percent of its value. One with nine months or less takes 100 percent.
A customer who holds a call does not own the stock, for marking a sell order, until the call is exercised.
Questions and answers
What is the Series 4 exam?
The Registered Options Principal Qualification Examination. FINRA says it assesses the competency of an entry-level principal to perform the job of a registered options principal, across six functions of options supervision.
How many questions are on the Series 4 exam?
135 multiple-choice questions in 3 hours and 15 minutes. 125 are scored and 10 are unidentified pretest questions that do not count.
What is the Series 4 passing score?
FINRA lists 72. The outline adds that scores are placed on a common scale by equating, to allow for small differences in difficulty between sets of questions.
Do you need the Series 7 for the Series 4?
Yes. FINRA lists the SIE and the Series 7 as corequisites: a candidate passes both to hold the Registered Options Principal registration, and needs a sponsoring member firm.
How much does the Series 4 exam cost?
FINRA charges $200 for the Series 4. The firm that sponsors the candidate files the Form U4 and requests the options principal position on it.