1. Which of the following is true regarding the shorting of options in a risk based account? M a. There is no limit to the number of total (units) that can be shorted M b. Clearing firm may require additional margin beyond the initial margin requirement M c. The OCC does not consider the positions of all accounts at a clearing firm when assessing risk to that firm M d. Converting naked options into vertical spreads.
2. You have established the following positions: Short 100 ABCD 150 Calls Short 100 ABCD 150 Puts If the price of ABCD is $150 at expiration, what is the resulting ABCD position in your account on the business day following expiration? M a. Flat or no position in ABCD M b. Long 100,000 shares ABCD M c. Short 100,000 shares ABCD M d. Both a and c M e. Unable to determine