Chapter 04 · Section 4.1

Initial Margin Day 3

Situation at the beginning of day 3

POSITIONS                                MARGINS 
short 3 covered Colgate Nov 35 calls      $     0   
short 3 uncov. Colgate Nov 35 calls       $ 3,330 
long 5 Unisys Nov 75 puts                 $     0 
excess margin:                            $ 2,820 

What is the initial margin requirement for this transaction?

a) +2560
b) -3000
c) -3360
d) -1280
e) -2960

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