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A trader writes 5 naked put option contracts with each contract being on 1 0 0 shares. The option price is $ 1 0 ,
A trader writes naked put option contracts with each contract being on shares. The option price is $ the time to maturity is months, and the strike price is $
a What is the margin requirement if the stock price is $
b How would the answer to a change if the rules for index options applied?
c How would the answer to a change if the stock price were $
d How would the answer to a change if the trader is buying instead of selling the options?
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