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.
d) Margins are required for uncovered option positions.
e) Margins are required for short option positions.
Somebody who is short an option but deposits the necessary amount of the underlying asset does not need to deposit a margin.