Which of the following statements about margin is true?
a) A Trading Participant may request from its Clients for margins above the minimum required by the Clearing House.
b) Each Client’s Open Positions must be marked to market daily and additional call for margins must be made if necessary.
c) Where margins are required, the Trading Participant must obtain a minimum initial margin and maintain the amount of minimum margins on all Open Positions.
d) A Trading Participant may Close Out any Open Position of a Client where the Client fails to comply with a demand for margin within 1 hour from the time of demand.
A call option has a strike price of RM50 and a premium of RM200. If the stock price is at RM50 at expiry, what is the maximum possible loss of the option holder?
Which of the following statements regarding orders is false?
a) Where the customer's order is a careful discretion order, trades allocated to the house error account must not be worse off to that allocated to customer's account.
b) A Representative can execute an order that will have an impact on the market for, or price of, a security or Futures Contract.
c) A Representative is not allowed to purchase substantial volume in a thinly traded counter, which accounts for a large proportion of the market volume, to establish a predetermined price.
d) A Representative should be alert to orders placed near the close on the last trading day of the month, quarter or year.