Consider the following stock options trading on the exchange, for an underlying stock with a price of 100:

	Call option 1	Call option 2
	(K = 100)	(K = 110)
Price	10.30	6.06
Delta	0.6151	0.4365
Gamma	0.0181	0.0187

A trader decided to sell 200 call options with a strike of 100.

1. How would the trader maintain a delta-gamma hedged portfolio?
2. Evaluate the performance of this hedged portfolio for when the stock price drops to 99, the call option 1 price is 9.70, and the call option 2 price is 5.63.