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14.Which of the following are true for CBOE stock options?

A.There are no margin requirements

B.The initial margin and maintenance margin are determined by formulas and are equal

C.The initial margin and maintenance margin are determined by formulas and are different

D.The maintenance margin is usually about 75% of the initial margin

A.There are no margin requirements

B.The initial margin and maintenance margin are determined by formulas and are equal

C.The initial margin and maintenance margin are determined by formulas and are different

D.The maintenance margin is usually about 75% of the initial margin

Answer: B

Margin accounts for options must be brought up to the initial/maintenance margin level every day.

Margin accounts for options must be brought up to the initial/maintenance margin level every day.

Flashcard info:

Author: CoboCards-User

Main topic: Finance & Investment

Topic: Derivatives

Published: 27.10.2015