thanks. seems you are right on the money. written response from dreyfus confirms your views.
regards
> Dear Mr. [taxman],
>
> Thank you for your email. You are correct, but
> let me qualify your
> statement. You are required to deposit $50,000
> only if you have a margin
> agreement on file. If the trade will be done in
> a cash account, you will
> need to deposit $100,000. In both scenarios, it
> doesn't matter where the
> price of the underlying stock moves to. You
> have entered a "contract" to buy
> at 100. I hope this explanation helps.
>
> If you have any further questions, please email
> us.
>
> Thank you
>
> John
> Customer support
>
>
>
> -----Original Message-----
> From: [taxman] [mailto:pkorn@yahoo.com]
> Sent: Monday, January 03, 2000 6:35 AM
> To: Technical Support
> Subject: margin on option exercise
>
>
> if you want to exercise 10 call contracts with
> 100 strike your cost is $100,000, requiring
> cash
> of $50,000 in your account even though the
> underlying has risen to 200 per share.
>
> is this correct?
>
> thanks.
>
> regards
>
> [taxman] |
