Question
A trader writes seven naked option contracts, with each contract being on 100 shares. The option price is S4.8 and the time to maturity is
A trader writes seven naked option contracts, with each contract being on 100 shares. The option price is S4.8 and the time to maturity is nine months. The stock price is $256.
(1) What is the margin requirement if the options are call options with a strike price of $290?
(2) What is the margin requirement if the options are index call options with a strike price of $265?
(3) What is the margin requirement if the options are put options with a strike price of$230?
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
