Students will be able to:- Identify basic characteristics, regulations, and requirements of covered calls in margin accounts and compare level of risk with that of uncovered calls
- Recognize basic characteristics, regulations, and requirements of uncovered calls in margin accounts
- Perform margin calculations for in the money, at the money, and out of the money uncovered call options
- Calculate margin requirements for new vs. established uncovered calls
- Compute Regulation T excess and identify how to apply the results
- Recognize what is meant by a 'buy-in,' 'expiration,' and 'assignment' of an uncovered call
|