Which one of the statements about margin requirements on option positions is not correct?
A) The margin required will be higher if the option is in the money.
B) If the required margin exceeds the posted margin the option writer will receive a margin call.
C) A buyer of a put or call option does not have to post margin.
D) Even if the writer of a call option owns the stock the writer will have to meet the margin requirement in cash.
Correct Answer:
Verified
Q21: Exchange-traded stock options expire on the _
Q34: An American call option gives the buyer
Q35: You buy a call option on Merritt
Q39: The Option Clearing Corporation is owned by
Q39: You invest in the stock of Rayleigh
Q41: A put on Sanders stock with a
Q42: An option with a payoff that depends
Q43: You are cautiously bullish on the common
Q54: The potential loss for a writer of
Q59: Buyers of listed options _ required to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents