Please give me simply explaination why people said that "Only options writer requires to maintain margin requirement and mark-to-market" (people're discussing about the difference between option & futures)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter5: Financial Options
Section: Chapter Questions
Problem 3P: Black-Scholes Model Assume that you have been given the following information on Purcell Industries...
icon
Related questions
Question

Please give me simply explaination why people said that "Only options writer requires to maintain margin requirement and mark-to-market" (people're discussing about the difference between option & futures)

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Options
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning