A trader writes five naked put option contracts with each, Ask an Expert

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A trader writes five naked put option contracts, with each contract being on 100 shares. The option price is $10, the time to maturity is six months, and the strike price is $64. a) What is the margin requirement if the stock price is $58? 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 were $75? d) How would the answer to (a) change if the trader is buying instead of selling the options?

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Financial Management, Finance

Category:- Financial Management
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