Example 2
Portfolio:
Product | Underlying | Strike | Quantity |
Put | WETH/USDC | 2000 | -1 |
If ETH → ∞, 0 ETH required.
USDC collateral at specific ETH at expiry:
| ETH @ Expiry | ETH @ Expiry | |||
Product | Underlying | Strike | Quantity | 0 | 2000 |
Put | WETH/USDC | 2000 | -1 | -2000 | 0 |
Collateral Required | 2000 | 0 |
Compute 1) – 2):
| WETH Price @ Expiry | WETH Price @ Expiry |
| - | 2000 |
USDC equiv of 0 ETH | - | - |
USDC collateral required | 2000 | - |
Net amount | -2000 | - |
Total collateral required = 2000 USDC
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