Which One of the Statements About Margin Requirements on Option

question 78

Multiple Choice

Which one of the statements about margin requirements on option positions is not correct?

• A) The margin required will be higher if the option is in the money.
• B) If the required margin exceeds the posted margin the option writer will receive a margin call.
• C) A buyer of a put or call option does not have to post margin.
• D) Even if the writer of a call option owns the stock the writer will have to meet the margin requirement in cash.

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refers to individuals or behaviors that deviate from societal norms or expectations, often carrying a negative connotation.

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describes entities or individuals that receive actions or are acted upon without actively responding or initiating action.

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Having a strong resolve or firmness of purpose.

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