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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: KFE who wrote (678)	1/5/2000 4:11:00 PM
From: taxman	Respond to of 8096

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]