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
• c) -2560
  No. Don't forget that the price of the GM stock had time to change during the day, and it did change. Do your calculation with the closing prices of day 3.
  d) -2880
  e) -2680

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