Buyers of call options __________ required to post margin deposits, and sellers of put options __________ required to post margin deposits.
A)are; are not
B)are; are
C)are not; are
D)are not; are not

Question

Quizplus · Accepted Answer

Buyers of call options are not required to post margin deposits, meaning they only pay the premium for the option. However, sellers of put options are required to post margin deposits as they have the obligation to buy the underlying asset if the option is exercised.

Buyers of Call Options __________ Required to Post Margin Deposits