Series 7 - General Securities Representative Exam

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Purchases of Equity LEAPS options with over 9 months to expiration require a minimum of what percentage of market value for margin purposes?

115%
A
75%
B
100%
C
110%
D

Explanations

For purchases of puts or calls with more than 9 months until expiration, 75% of the total cost / option current market value is required When time to expiration goes below 9 months, the option no longer has value for margin purposes. Purchases of puts or calls with 9 months or less until expiration must be paid for in full

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