FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose an investor writes 10 naked put option contracts on a stock. If the put option price is $13, strike price is $65 and share

Suppose an investor writes 10 naked put option contracts on a stock. If the put option price is $13, strike price is $65 and share price is $62, what would be the initial margin requirement?

*note : 1 option contract = 100 shares.

19,500

25,400

22,400

24,000

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

Recommended Textbook for

Principles Of Finance With Excel

Principles Of Finance With Excel

Authors: Simon Benninga, Tal Mofkadi

3rd Edition

0190296380, 9780190296384

More Books

Students also viewed these Finance questions

Question

★★★★★
Market conditions have changed. Maria Gonzalez now estimates the risk-free rate to be 3.60%, the company's credit risk premium is 4.40%, the domestic beta is estimated at 1.05, the international beta...

Answered: 1 week ago

Question

★★★★★
Which of the following alternatives to the underlined portion would NOT be acceptable? F. Needs. Interpreting G. Needs; interpreting H. Needs, so J. Needs, interpreting

Answered: 1 week ago

Question

★★★★★
=+a) What is the value predicted by this model for January 2010 1Time = 20102?

Answered: 1 week ago

Question

★★★★★
Cautionary Tales, Inc., is considering the acquisition of Danger Corp. at its asking price of $150,000. Cautionary would immediately sell some of Dangers assets for $15,000 if it makes the...

Answered: 1 week ago

Question

★★★★★
Which of the following is not a property of a number data type? (1 point) Allow zero length Caption Validation Required

Answered: 1 week ago

Question

★★★★★
c++ Thursday, January 30, 2020 11:59 PM 1. Prompt the user to enter 10 numbers 2. Print the maximum number 3. Print the minimum number 4. Print the average ASSIGNMENT SUBMISSION Text Submission Write...

Answered: 1 week ago

Question

★★★★★
You are a solution architect conducting a security model workshop for a customer. The customer uses the sharing feature in security for several security requirements. You need to evaluate the risks...

Answered: 1 week ago

Question

★★★★★
1. In the balance diagram below, a) Fill in the phase fields. (20 p.) b) Which of the alloys containing 2%, 80%, 93% B and 97% B can be (precipitation) hardening? Briefly explain age hardening. (30...

Answered: 1 week ago

Question

★★★★★
Dry cleaning is a $5 billion industry primarily because the natural fabrics popular today, such as wool and linen, require professional cleaning. For more than five decades, customers have known and...

Answered: 1 week ago

Question

★★★★★
Why is Python considered a good language for beginners in programming and software testing? Python's complex syntax is a good challenge for beginners. Python has limited resources and libraries,...

Answered: 1 week ago

Question

★★★★★
Suppose a firm has a production function given by Q = LK, w = 16, r = 25 a) Find the firm's total cost function and marginal cost, assuming that there are no fixed costs. b) Does the firm exhibit...

Answered: 1 week ago

Question

★★★★★
2. If you decide to create your own brand, what personal qualities will give you greater visibility, recognition, and acceptance in the labor market? These qualities should send the message, Pick me;...

Answered: 1 week ago

Question

★★★★★
1. Analyze your work or school environment. Identify the distractions that you face on a daily basis and defend or reject their relevance to your ability to critically think, problem solve, and...

Answered: 1 week ago

Question

★★★★★
2. Print out the most recent e-mails that you have sent or received and bring them to class. Analyze their effectiveness in terms of the e-mail tips in this chapter. Did the messages violate any of...

Answered: 1 week ago

Previous Question Next Question