What is the traditional margin requirement

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Reference no: EM131896921

1. You have established the following positions:

Long 500 ABC Nov 1240 Calls @ 5

Long 500 ABC Nov 1205 Puts @ 6

What is the traditional margin requirement?

a. $500,000

b. $550,000

c. $600,000

d. $700,000

2. In portfolio margin, equity options and stocks are tested with +/- 15% price changes. If you buy $100,000 of ABCD stock, what is the portfolio margin requirement?

a. $15,000

b. $25,000

c. $30,000

d. $50,000

Reference no: EM131896921

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