Question: only 2nd question will be solved here 1. A trader writes five naked put option contracts, with each contract being on 100 shares. The option

only 2nd question will be solved here

1. A trader writes five naked put option contracts, with each contract being on 100 shares. The option price is $10, the time to maturity is six months, and the strike price is $64. (a) What is the margin requirement if the stock price is $58? (b) How would the answer to (a) change if the rules for index options applied? (c) How would the answer to (a) change if the stock price were $70 ? (d) How would the answer to (a) change if the trader is buying instead of selling the options? 2. What is the effect of an unexpected cash dividend on (a) a call option price and (b) a put option price

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