SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jill who wrote (590)1/3/2000 6:41:00 PM
From: taxman  Read Replies (1) of 8096
 
Regulation T - A Federal Reserve Board rule that sets the amount of credit available to consumers for speculation through securities dealers and brokerage houses. The initial requirement is $2,000 in either fully paid for eligible securities or cash in your account. It requires that a firm cannot lend more than 50% of the purchase price on any margin eligible securities purchased. It also requires that all accounts maintain 25% equity ownership.

assuming that this is an accurate representation of regulation t, a firm cannot lend more than 50% of the purchase price. so if your exercise price (purchase price) is $100,000 it seems you would have to put up $50,000 regardless of how high the underlying is.

regards

bizwizbang.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News