Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose an investor writes 6 naked put option contracts on a stock. If the put option price is $12, strike price is $55 and share

Suppose an investor writes 6 naked put option contracts on a stock. If the put option price is $12, strike price is $55 and share price $60, what would be the initial margin requirement?

(note.one option contract=100shares)

$21400

$10500

$20500

$11400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

The Changing Geography Of Banking And Finance

Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro

1st Edition

1441947205, 978-1441947208

Students also viewed these Finance questions