SIE Exam Question 493: Answer and Explanation

Question: 493

An investor who wishes to include a prior purchase of a mutual fund in a new letter of intent, wants to backdate the letter. Which of the following is correct?

• A. He may do this within 3 months.
• B. He may do this within 7 business days.
• C. He may do this within 2 months.
• D. He may do this within 1 month.

Correct Answer: A

Explanation:

A: A letter of intent is good for 13 months and may be backdated by the purchaser for 3 months. The 13-month window starts at the back date.