What is the margin requirement

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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?

Reference no: EM132487710

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