Question: Explain why brokers require margin when clients write options but not when they buy options. Explain why an American call option on a dividend-paying stock

  1. Explain why brokers require margin when clients write options but not when they buy options.
  2. Explain why an American call option on a dividend-paying stock is always worth at least as much as its intrinsic value. Is the same true of a European call option? Explain your answer.

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