Correct answer: B ($1,410.00)

A short position in three contracts means 300 options (assuming 100 options per contract).

Step 1: Calculate the option premium value

• Premium per option = `$2.70`
• Number of options = 300

$$300 \times 2.70 = 810$$

Step 2: Determine the out-of-the-money amount

For a put:

• Strike price = `$20`
• Stock price = `$23`
• Out-of-the-money amount = `$3` per option

Step 3: Compute the two margin formulas

Formula 1:

$$100\%\text{ of option value} + 20\%\text{ of stock price} - \text{out-of-the-money amount}$$

Using total amounts for 300 options:

• Option value = 810
• 20% of underlying stock value = $0.20 \times 23 \times 300 = 1{,}380$
• Out-of-the-money amount = $3 \times 300 = 900$

$$810 + 1{,}380 - 900 = 1{,}290$$

Formula 2:

$$100\%\text{ of option value} + 10\%\text{ of strike price}$$

• 10% of strike value = $0.10 \times 20 \times 300 = 600$

$$810 + 600 = 1{,}410$$

Step 4: Take the greater amount

• Greater of `1`,290 and \`1,410 = **\$1`,410**

So the margin requirement is $1,410.00.