Chapter 04 · Section 4.1

Margin Requirement- GM Puts

END OF DAY POSITIONS                MARGINS   CLOSING PRICES 
short 3 covered Colgate Nov35 calls $     0   Colgate Stock      $37.50
short 3 uncov. Colgate Nov 35 calls $ 3,330   Unisys Stock       $75.00
long  5 Unisys Nov 75 puts          $     0   Colgate Nov 35 Call $3.60
excess margin:             $ 2,820            Unisys Nov 75 Put   $1.75

TINA'S TRANSACTIONS ON DAY 3: Sold 2 GM March 70 puts at $2.00

TINA'S POSITIONS DURING DAY 3        MARGINS  CURRENT PRICES  

short 3 covered Colgate Nov35 calls $     0   Colgate stock        $39.00 
uncov. Colgate Nov35 calls          $ 3,330   Colgate Nov35 call   $ 5.00
long  5 Unisys Nov 75 puts          $     0   GM Stock             $72.00 
short 2 uncov. GM Mar 70 puts       $ .....   GM Mar 70 puts       $ 3.00
excess margin:                      $ .....   Unisys Nov75 put     $ 1.75 

a) +3080
• b) -1540
  No. This is the new margin requirement for only one uncovered GM 70 put. Please try again.
  c) -2560
  d) -2880
  e) -2680

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