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.
• c) Margins are required for open option positions.
  No. A long option position (being the holder of an option) is also an open option position, and there is no margin requirement for this.
  d) Margins are required for uncovered option positions.
  e) Margins are required for short option positions.

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