Chapter 04 · Section 4.1

Margin Requirement Day 2

Unfortunately Tina was wrong. Rather than declining, the Unisys stock went up. The Unisys puts, bought at $2.50, went down to $1.75. Here is her situation at the end of day 2.

Positions                          Margins  Cosing Prices   

short 3 covered Colgate Nov 35 calls $     0   Colgate Stock    $37.50
short 3 uncov.  Colgate Nov 35 calls $ .....   Colgate Stock    $37.50
long  5 Unisys Nov 75 puts           $ .....   Colgate Nov 35 C $ 3.60
                                               Unisys Nov 75 P  $ 1.75
excess margin:                       $ .....         

What is the total margin requirement at the end of the day? Please enter the appropriate dollar amount.

a) +3330
b) +3500

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