Q & A Database

The GIPS Standards Q&A database contains questions and answers (Q&As) on various searchable topics that provide additional interpretation on an issue. Q&As are considered to be authoritative guidance and must be followed in order to claim compliance with the GIPS standards.

Content from prior Q&As was included in the GIPS Standards Handbook as much as possible and many Q&As were archived. Change the Status drop-down filter to "Archived" to see the archived Q&As.

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1 Result
  • Archived

    Effective: 1 December, 2013 - 31 December, 2019
    Categories: Leverage/Derivatives
    Source: GIPS Executive Committee

    Do the GIPS standards include an example of how to value a portfolio that includes options? Please provide an example for how to calculate a return for a portfolio that includes options.

    Portfolio consists of $90 stocks and $10 call options at the beginning of the period. Valuations of the stocks and options are $95 and $25 respectively at the end of the period. Total value of the portfolio changes from $100 (= $90 + $10) to $120 (= $95 + $25) and there are no external cash flows for the period.

    R = (120 – 100) / 100 = 20%

    Please also see original Q&A
    Please also see updated Q&A