SIE Calculation and Formula Drill
Flashcards covering every core SIE quantitative formula, from bond yields to option breakevens and margin math.
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Questions Covered in This Set
12 cards to master
Current yield formula
Annual interest ÷ current market price. A 6% bond at $800 = $60/$800 = 7.5%.
Yield ladder for a DISCOUNT bond
Nominal < Current Yield < YTM < YTC (reverse entirely for a premium bond; all equal at par).
Public Offering Price (POP) formula
POP = NAV ÷ (100% − sales charge %). NAV $9.40 with 6% load → 9.40/0.94 = $10.00.
Sales charge percentage formula
(POP − NAV) ÷ POP — the denominator is POP, not NAV (classic trap).
NAV formula
(Total assets − liabilities) ÷ shares outstanding.
Option breakeven mnemonics
CAL: Calls Add premium to strike. PSP: Puts Subtract premium from strike. Same breakeven for buyer and seller.
Long 1 XYZ 60 put at 3 — breakeven, max loss, max gain
Breakeven 57; max loss $300 (premium); max gain (60 − 3) × 100 = $5,700.
Reg T and maintenance requirements
Reg T initial = 50% of purchase price, $2,000 minimum equity; maintenance 25% long, 30% short.
Long margin account equity
Market value − debit balance.
Bond quote conventions
Corporates/munis in eighths (98 1/2 = $985; 1 point = $10); governments in 32nds (99.16 = 99.5% = $995).
EPS and P/E formulas
EPS = (net income − preferred dividends) ÷ common shares; P/E = market price ÷ EPS.
Net capital loss deduction limit
Up to $3,000 per year against ordinary income; excess carried forward indefinitely.
