- 1). Review the formula for investment returns. Investment returns are calculated by dividing the difference between your initial investment and the current market value of your portfolio by your initial investment.
- 2). Freeze your current market value. Mark to market is an accounting technique used to account for investment securities with dynamic prices. Take a snapshot of your investment portfolio or print a copy. Use this as the current market value of your portfolio.
- 3). Determine the initial value of your investment. This is the initial amount you paid for all of the options and futures in your current portfolio.
- 4). Find the difference between the initial investment and the current market value. Subtract the current market value of the portfolio (Step 2) from the initial value of your investment (Step 3).
- 5). Divide the difference (Step 4) by the initial value of your investment (Step 3). This is the "mark-to-market" return on your options portfolio.
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