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