Free printable
Series 7 Formula Sheet
Every formula you need for the Series 7 exam on one page: yields, tax-equivalent yield, options, margin, mutual fund pricing, ratios and taxes. Copy it out by hand until you can reproduce it from memory.
Equity (Chapter 5)
| Measure | Formula |
|---|---|
| Outstanding shares | Issued − Treasury |
| Cumulative voting | Shares × Seats |
| Preferred dividend | Rate × Par ($100) |
| Conversion ratio | Par ÷ Conversion price |
| Parity price of stock | Convertible’s market price ÷ Conversion ratio |
| Parity price of convertible | Stock price × Conversion ratio |
| Right value, cum-rights | (Market − Subscription) ÷ (Rights per share + 1) |
| Right value, ex-rights | (Market − Subscription) ÷ Rights per share |
Debt (Chapters 6–9)
| Measure | Formula |
|---|---|
| Dollar price | Quote (% of par) × $1,000; 1 point = $10; 1/32 = $0.3125 |
| Current yield | Annual interest ÷ Market price |
| Approximate YTM | [Annual interest + (Par − Price) ÷ Years] ÷ [(Par + Price) ÷ 2] |
| Discount bond yields | Nominal < Current < YTM < YTC |
| Premium bond yields | Nominal > Current > YTM > YTC |
| Price change from duration | ≈ −Duration × Change in yield |
| Accrued interest (30/360) | Par × Coupon × Days ÷ 360 |
| T-bill price | Face × [1 − (Discount yield × Days ÷ 360)] |
| TIPS interest | Coupon rate × Inflation-adjusted principal |
| Tax-equivalent yield | Municipal yield ÷ (1 − Tax rate) |
| Municipal-equivalent yield | Taxable yield × (1 − Tax rate) |
| Property tax | Assessed value × Mills ÷ 1,000 |
| Debt service coverage | Net revenue ÷ Debt service |
| Total takedown | Additional takedown + Concession |
Investment Companies (Chapter 10)
| Measure | Formula |
|---|---|
| NAV per share | (Assets − Liabilities) ÷ Shares outstanding |
| Sales charge % | (POP − NAV) ÷ POP |
| POP | NAV ÷ (1 − Sales charge %) |
| Premium / discount (closed-end) | (Market price − NAV) ÷ NAV |
Options (Chapters 13–14)
| Position | Breakeven | Max gain | Max loss |
|---|---|---|---|
| Long call | Strike + premium | Unlimited | Premium |
| Short call | Strike + premium | Premium | Unlimited |
| Long put | Strike − premium | BE × 100 | Premium |
| Short put | Strike − premium | Premium | BE × 100 |
| Covered call | Cost − premium | (Strike − cost + premium) × 100 | BE × 100 |
| Protective put | Cost + premium | Unlimited | (Cost + premium − strike) × 100 |
| Short stock + long call | Short price − premium | BE × 100 | (Strike − short price + premium) × 100 |
| Call spread | Lower strike + net premium | Debit: strike difference − debit · Credit: credit | Debit: debit · Credit: strike difference − credit |
| Put spread | Higher strike − net premium | (same as above) | (same as above) |
| Straddle | Strike ± total premium | Long: unlimited · Short: premiums | Long: premiums · Short: unlimited |
Intrinsic value: call = market − strike; put = strike − market (never below zero). Time value = premium − intrinsic value. Index hedge contracts = (Portfolio value × Beta) ÷ (Index × $100). Uncovered equity option margin = Premium + 20% of underlying − OTM amount (minimum: premium + 10%).
Margin (Chapter 17)
| Measure | Formula |
|---|---|
| Long account | LMV − DR = EQ |
| Short account | SMV + EQ = CR |
| Reg T requirement | 50% of market value |
| Excess equity (SMA) | EQ − Reg T requirement |
| Buying power | SMA × 2 |
| Long maintenance call level | DR ÷ 0.75 |
| Short maintenance call level | CR ÷ 1.30 |
Analysis, Returns and Taxes (Chapters 15–16)
| Measure | Formula |
|---|---|
| Current ratio | Current assets ÷ Current liabilities |
| Quick ratio | (Current assets − Inventory) ÷ Current liabilities |
| EPS | (Net income − Preferred dividends) ÷ Common shares |
| P/E ratio | Price ÷ EPS |
| Dividend payout | Dividends per share ÷ EPS |
| Dividend (current) yield | Annual dividend ÷ Price |
| Total return | (Income + Price change) ÷ Beginning value |
| Real return | Nominal return − Inflation |
| Sharpe ratio | (Return − Risk-free rate) ÷ Standard deviation |
| Capital loss deduction | Up to $3,000 per year; excess carried forward |
From Series 7 Mastery, where every formula is taught with a step-by-step worked example. See the options cheat sheet for options strategies in more detail.