An investor writes six naked calls. The option price is $15.50, the strike price is $60.00,...
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An investor writes six naked calls. The option price is $15.50, the strike price is $60.00, and the stock price is $49.00. What is the initial margin requirement? How much of this amount must be paid "out of pocket"? What are the profit and rate of return if the stock price at expiration is $67? An investor writes six naked calls. The option price is $15.50, the strike price is $60.00, and the stock price is $49.00. What is the initial margin requirement? How much of this amount must be paid "out of pocket"? What are the profit and rate of return if the stock price at expiration is $67?
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The initial margin of naked call option is the greater of The sum o... View the full answer
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
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