Chapter 04 · Section 4.1

Requirements

Which of the following is the best way to define when a margin will be required, in all kinds of option trades?

a) Margins are required for an option sale.
• b) Margins are required for uncovered short option positions.
  Yes. All short option positions require a margin deposit unless the short option position is covered by a position in the underlying asset. Continue
  c) Margins are required for open option positions.
  d) Margins are required for uncovered option positions.
  e) Margins are required for short option positions.

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