Series 7 Exam Prep. Series 7 Guru Shares All the Math Needed to Pass your Series 7 Exam!

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On the covered call example I plug premium of 11 instead of the correct premium 14 into the T. The breakeven is correct 125-14=111.
00:00 Opening comments
1:44 Working capital, Balance sheet liquidity
Current assets - current liabilities = working capital
Quick assets = current assets - inventory
Effects of dividends being declared
8:03 Current ratio. Liquidity
Current assets ÷ Current liabilities = current ratio
9:32 Acid test or quick ratio. Liquidity
Quick assets ÷ current liabilities = acid or quick ratio
11:24 Debt to equity ratio. It is debt to capitalization but is asked this way. My math and explanation are correct.
Solvency
Long term debt ÷ total capitalization = debt to equity or debt to total capitalization.
15:28 Price to earning ratio (PE Ratio) Very Testable
Price ÷ Earnings = PE ratio
18:02 Dividend payout ratio
Dividend ÷ earnings per share = div payout ratio
19:57 Current Yield. Very Testable
Annual dividend ÷ current market price= CY
Alert, read the full question
May ask for Annual know quarterly
22:13 Current Yield on Preferred stock
Annual dividend ÷ current market price=CY
24:06 Current yield on Corporate bond
Annual interest ÷ cmp
26:06 Parity of the common stock Very Testable
Par ÷ Conversion price = Conversion ratio
Current market price of Conv Bond ÷ Conversion ratio= parity of common stock
31:28 Parity of the Bond. Very Testable
Current market price of common share × Conversion ratio= parity of the bond
36:20 Tax free equivalent yield Very Testable
Taxable yield × (100%-tax bracket)= tax free equivalent yield
39:08 Taxable Equivalent yield Very Testable
Tax free yield ÷ (100%-tax bracket) =taxable equivalent yield
41:16 Calculate percentage of public offering price
Sales charge ÷ Public offering price = % of public offering price
Maximum sales charge is 8.5%
43:47 recalculate Public Offering Price
Net asset value (NAV) ÷ (100% - sales charge) = POP
45:06 Breakeven in Call contracts
Strike price + Premium = break even
Call UP
47:27 Breakeven in Put contracts
Strike price - premium = Breakeven
Put DOWN
48:41 Breakeven in straddles & combinations
Call = strike price + total premiums= upside breakeven
Put = Strike price - total premiums= downside breakeven
51:06 Breakeven in call spreads
Lower strike price + Net premium = call spreads
Calls add to lower C.A.L.
53:54 Breakeven in Put Spreads
Higher strike price - Net premium = Breakeven put spread
Put Subtract Higher P.U.S.H.
56:28 Breakeven in Covered calls or buy/write
Stock cost - premium = Breakeven
1:01:04 Breakeven in protective Put
Stock Cost + Premium = Breakeven
Only time you add to a put
You own stock and buy put to put it to someone else for your protection from loss
1:03:19 Market value @ maintenance long position
Debit Balance or Debit register ÷ .75= long
1:04:57 long market - debit balance = Equity
25% min equity balance in long/holding margin account. You own stock
Reg T explained
SMA explained
1:09:40 Credit balance - Short market value = equity
Reg T
Proceeds from short stock value + 50% (Reg T) = credit balance or credit register
30% min equity balance in short position. You don't own the actual underlying security
1:11:58 Market Value @ maintenance short credit register or credit balance ÷ 1.3 = market value
1:13:34 Closing statement