You want to invest in options. You decided that writing options is a profitable investment. Therefore, you will write 7 naked Call option contracts with each contract being on 100 shares. The option price is $12, the time to maturity is 6 months, and the strike price is $148.

a.What is the margin requirement if the stock price is $159?

b.How would the answer to (a) change if the rules for index options applied?

c.How would the answer to (a) change if the stock price is $133?

d.How would the answer to (a) change if you decided buying instead of selling the options?