Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial Derivates specialist!!!! plz solve this 2 short questions, Pls give the logical and correct answers. A trader writes 7 naked call and 12 naked

Financial Derivates specialist!!!!

plz solve this 2 short questions, Pls give the logical and correct answers.

A trader writes 7 naked call and 12 naked put option contracts, with each contract being on 100 shares.

The call option price is $8, the time to maturity is six months, and the strike price is $72.

The put option price is $6, the time to maturity is six months, and the strike price is $72.

e)How would call options margin requirement change if the stock price is $50 and if the trader is buying the call options instead of selling the call options? (1 pts)

f)How would put options margin requirement change if the stock price is $50 and if the trader is buying the put options instead of selling the put options?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

lowest boiling point and why 1. III. IV. V

Answered: 1 week ago