Question

mikes portfolio includes 100 shares of stock gamma and 200 shares of stock delta. stock gamma was bought at $45 per share, and stock delta at $30 per share. now, stock gamma is worth $50 per share, and stock delta is valued at $25 per share. what are the initial and current values of mikes portfolio?
initial: $9,000, current: $9,800
initial: $10,000, current: $10,000
initial: $10,500, current: $10,000
initial: $9,500, current: $10,400

Explanation:

Step1: Calculate initial value

Initial value of Gamma = 100×45 = 4500. Initial value of Delta = 200×30 = 6000. Total initial value = 4500 + 6000 = 10500.

Step2: Calculate current value

Current value of Gamma = 100×50 = 5000. Current value of Delta = 200×28 = 5600. Total current value = 5000+5600 = 10600.

Answer:

Initial $10,500, current $10,600