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To: taxman who wrote (482)	1/2/2000 1:52:00 AM
From: Jeffry K. Smith	Read Replies (3) \| Respond to of 8096

TM - What brokerage firm do you deal with which doesn't recalc your margin requirements depending on the movement of the underlying security? Is this common? Thanks, Jeff Smith

To: taxman who wrote (482)	1/2/2000 8:29:00 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 8096

if you want to exercise 10 call contracts with 100 strike your cost is $100,000, requiring cash of $50,000 in your account.i believe this is still the case even though the underlying has risen to 200 per share and your strike is 100. If underlying is at 200 and strike is 100, then you have equity of 200 - 100 = 100; i.e., 50%. So you can just use equity provided by ITM portion to exercise (assuming your broker approves of 50% margin equity as sufficient). I do not see where you get the 50K figure.