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1. A trader writes two naked put option contracts. The option price is $3, the strike price is $40 and the stock price is $35. What is the initial margin (one option contract is for the purchase of 100 shares)?

2. A United States investor writes six naked call option contracts. The option price is $4, the strike price is $60.00, and the stock price is $57.00. What is the initial margin requirement (one option contract is for the purchase of 100 shares)?

3. An investor has exchange-traded call options to buy 100 shares for a strike price of $20. There is a $1 cash dividend. Which of the following is the position of the investor after the cash dividend?

Call options to buy________ for a strike price of__________?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92846600

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