Chapter 04 · Section 4.1
Combined Positions
Which of the following combined positions entail no margin requirement at all?
d) None of the above.
Yes. In fact, in (c) there is no margin requirement for the option position. However, the short position in IBM shares requires a margin.Continue
a) A customer who is short 1 IBM Sept 150 put and who is long 100 IBM shares deposited in his safekeeping account.
b) A customer who is short 1 IBM Sept 150 put and who has 5 IBM shares deposited in his safekeeping account.
c) A customer who is short 5 IBM Sept 150 puts and who is also short 500 IBM shares, to be delivered in October.
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