Tagged Questions
4
votes
3answers
184 views
Margin when entered into a derivative contract
From Wikipedia
In finance, a margin is collateral that the holder of a financial
instrument has to deposit to cover some or all of the credit risk of
their counterparty (most often their ...
3
votes
2answers
136 views
Can you write a put option without sufficient funds to meet the potential obligation?
When writing a put option does your account have to be funded so that if the buyer exercises the right to sell you can meet your obligation, or can you write the put option without the funds to meet ...
3
votes
2answers
198 views
Rules for Broker Behavior with Covered Calls
When selling covered calls, there are a couple of things a broker could do if the stock has a sharp increase. Here's an example:
Buy Stock: $100
Sell Call $120@1month: $1
Two days later, the stock ...
