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
E) are always; are sometimes

Question

Quizplus · Accepted Answer

Buyers of call options are not required to post margin deposits because they can only lose the premium they paid for the option. Sellers of put options are required to post margin deposits because they have potential for significant loss if the underlying asset's price falls dramatically.

Buyers of Call Options __________ Required to Post Margin Deposits