Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which one of the statements about margin requirements on option positions is correct? Multiple Choice A) A buyer of a put or call option does

Which one of the statements about margin requirements on option positions is correct?

Multiple Choice

A) A buyer of a put or call option does not have to post margin.

B) If the required margin exceeds the posted margin, the option buyer will receive a margin call.

C) The margin required will be higher if the option is in the money.

D) Even if the writer of a call option owns the stock, the writer will have to meet the margin requirement in cash.

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

International financial management

Authors: Jeff Madura

13th edition

978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211

More Books

Students also viewed these Finance questions