Question
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?
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