Hello,
I am trying to finish a spreadsheet and am stuck on the calculation on bull plays. I understand the initial short margin calculations of –> 0.3 x Underlying – Out of the money difference. I am in Canada so it is 0.3 (30%). That I have working fine.
So when I add/purchase another strike more out of the money, the margin requirement comes down significantly and is different for each strike. I am not sure how this is calculated or can be put in a formula.
Does anyone know how this…