Question: Trader A writes a call option while trader B buys a put option over the same stock, with the same strike price and expiry date.

Trader A writes a call option while trader B buys a put option over the same stock, with the same strike price and expiry date. The stock price is equal to the strike price. Which of the following is correct?

Select one:

a. Margin deposits are not required from call option writers.

b. The required margin deposit for trader A is the same as for trader B.

c. The required margin deposit for trader A is lower than for trader B.

d. The required margin deposit for trader A is higher than for trader B.

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