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1. [8 points] You want to invest in options. You decided that writing options is a profitable investment. Therefore, you will write 7 naked Call

  1. 1. [8 points] You want to invest in options. You decided that writing options is a profitable investment. Therefore, you will write 7 naked Call option contracts with each contract being on 100 shares. The option price is $12, the time to maturity is 6 months, and the strike price is $148.
    1. What is the margin requirement if the stock price is $159?
    2. b:How would the answer to (a) change if the rules for index options applied?
    3. c:How would the answer to (a) change if the stock price is $133?
    4. d:How would the answer to (a) change if you decided buying instead of selling the options?

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