baseballlife7247 baseballlife7247
  • 01-01-2018
  • Business
contestada

An investor sells short 100 shares of abc stock at $87 and sells 1 abc jan 85 put @ $2 on the same day in a margin account. the customer must deposit:

Respuesta :

Kalahira
Kalahira Kalahira
  • 12-01-2018
Answer: $4,150
   To sell short stock, initial margin is 50%. 50% of $8,700 = $4,350. No margin is required on the short puts since they are covered by the short stock position. The $200 of premiums received from writing the puts is applied against the margin requirement of $4,350 for a deposit of $4,150.
Answer Link

Otras preguntas

Factor the expression
What was the attitude of freedpeople toward education after the end of the civil war?
What is the meaning of Winthrops metaphor city on a hill
can someone please help me so I don't fail and explain
An architect is designing a house in which a 104-square-foot room and a 130-square-foot room share a wall. What is the greatest possible integer length of the s
"be yourself. who else is better qualified
Compare -1.96312 & -√5
The two main components of plant fertilizers which affect algal growth when they are delivered to aquatic systems via runoff are nitrate and .
The Grolier Encyclopedia of Science and Technology is a
A student argues that in the real world, irrational numbers are never used. How do you respond?