Example 1

Portfolio:

Product	Underlying	Strike	Quantity
Call	WETH/USDC	2200	-1
Call	WETH/USDC	2300	2
Call	WETH/USDC	2400	-4

1. If WETH → ∞, WETH collateral required 3ETH

2. USDC collateral at specific WETH prices at expiry:

				ETH Price @ Expiry	ETH Price @ Expiry	ETH Price @ Expiry	ETH Price @ Expiry
Product	Underlying	Strike	Quantity	0	2200	2300	2400
Call	WETH/USDC	2200	-1	0	0	-100	-200
Call	WETH/USDC	2300	2	0	0	0	200
Call	WETH/USDC	2400	-4	0	0	0	0
Collateral Required				0	0	-100	0

1. Compute 1) – 2):

	WETH Price @ Expiry	WETH Price @ Expiry	WETH Price @ Expiry	WETH Price @ Expiry
	0	2200	2300	2400
USDC equiv of 3 ETH		6600	6900	7200
USDC collateral required		0	-100	0
Net amount		6600	6800	7200

No USDC collateral required

1. Total collateral required = 3 ETH