A Trader Writes Two Naked Put Option Contracts

question 2

Short Answer

A trader writes two naked put option contracts. The option price is $3, the strike price is $40 and the stock price is $42. What is the initial margin? _ _ _ _ _ _

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Definitions:

Self-efficacy

An individual's belief in their own ability to complete tasks and reach goals, affecting their approach to challenges and problem-solving.

Biopsychosocial Approach

An integrated approach that considers biological, psychological, and social factors in understanding health and illness.

Cultural Expectations

The shared beliefs and norms within a society about how people should behave, which can influence individual actions and perceptions.

Autonomic Nervous System

A part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rates.