Chapter 02 · Section 2.1

Margin Calls

                           FUTURES        PURCHASED OPTIONS     
Risk (potential loss)      Unlimited       Limited        
Margin Calls                .....           .....   
Hedging Strategies          .....           .....  
Price Protection            .....           .....

Is this statement correct? "The holder of a futures contract may be subjected to unlimited margin calls until he closes his position, whereas the holder of an exchange-traded options contract is not subject to any margin calls whatsoever."

a) no
No. If the most an options holder can lose is limited to the price he paid for the option, there is no need for a broker to collect a margin deposit.
b) yes

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