5 ESSENTIAL ELEMENTS FOR PNL

And this is determined by the rebalancing frequency. But "envisioned P&L" refers to an average about all feasible price tag paths. So there is not always a contradiction below. $endgroup$For making the two strategies similar you need to think about investing/borrowing $PnL_1$ at level $r$ in order that it stays from the system until finally $t_2,.$