Which of the following must post margin?
A) The seller of an option
B) The buyer of an option
C) The seller and the buyer of an option
D) Neither the seller nor the buyer of an option

Question

Quizplus · Accepted Answer

The seller of the option must post margin as a guarantee that the payoff on the option (if there is one)will be made.The buyer of the option usually pays for the option upfront and so no margin is required.

Which of the Following Must Post Margin