Multiple Choice
Suppose you are managing a stock portfolio currently valued at $2 million that has a portfolio beta of 1.60 and you are interested in call option overwriting to raise additional funds. If the S&P 100 index recently closed at 541.86 and a July 600 OEX 100 call option contract has a premium of 2.45, what is the maximum number of contracts you could write on a margin account basis using the stock portfolio as collateral?
A) 195
B) 293
C) 390
D) 781
Correct Answer:
Verified
Correct Answer:
Verified
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