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Please include excel formulas to fill in the yellow blanks for this question! Thank you very much!!! A United States investor writes eight naked call
Please include excel formulas to fill in the yellow blanks for this question! Thank you very much!!!
A United States investor writes eight naked call option contracts and eleven naked put option contracts
each contract is for options on shares The call option price is $ the put option price is $
the strike price for both calls and puts is $ and the stock price is $ What is the initial margin
requirement for the investor?
This information is summarized in the table below.
The initial and maintenance margin for a written naked call option is the greater of the following two
calculations:
Calculation : A total of of the proceeds of the sale plus of the underlying share price less the
amount if any by which the option is out of the money
Margin requirement for all written call option contracts
Calculation : A total of of the option proceeds plus of the underlying share price
Margin requirement for all written call option contracts
Therefore, the initial and maintenance margin for all written naked call options is:
The initial and maintenance margin for a written naked put option is the greater of:
Calculation : A total of of the proceeds of the sale plus of the underlying share price less the
Please include excel formulas for the yellow blanks! Thank you!!
Margin requirement for all written put option contracts
Calculation : A total of of the option proceeds plus of the exercise price
Margin requirement for all written put option contracts
Therefore, the initial and maintenance margin for all written naked put options is:
Hence, the total initial margin requirement for the investor is:
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