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Question 5 ( 2 0 points ) Suppose that a trader writes three naked put option contracts, with each contract being on 1 0 0
Question points Suppose that a trader writes three naked put option contracts, with each contract being on shares of underlying stock. The option price is $ on each share, the time to maturity is six months, and the strike price is $ a Write out the formula and draw the graph for the trader's profit on each put option on share of stock. marks b What is the margin requirement for the trader if the current stock price is $ marks c How would the answer to b change if the trader is buying instead of writing the options? marks
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Suppose that a trader writes three naked put option contracts, with each contract being on shares of underlying stock. The option price is $ on each share, the time to maturity is six months, and the strike price is $
a Write out the formula and draw the graph for the trader's profit on each put option on share of stock. marks
b What is the margin requirement for the trader if the current stock price is $ marks
c How would the answer to b change if the trader is buying instead of writing the options? marks
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