Chapter 04 · Section 4.1
Combined Positions
Which of the following combined positions entail no margin requirement at all?
b) A customer who is short 1 IBM Sept 150 put and who has 5 IBM shares deposited in his safekeeping account.
No. Owning the underlying asset security does not protect against the risk inherent in a price fall.
c) A customer who is short 5 IBM Sept 150 puts and who is also short 500 IBM shares, to be delivered in October.
d) None of the above.
a) A customer who is short 1 IBM Sept 150 put and who is long 100 IBM shares deposited in his safekeeping account.
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