THE 2-MINUTE RULE FOR PNL

Alternatively, the gamma PnL is paid out for you over the facet, not on the choice top quality, but from your buying and selling routines inside the fundamental you perform your hedging account.For making The 2 solutions equivalent you'll want to think of investing/borrowing $PnL_1$ at rate $r$ to ensure that it stays within the method till $t_2,.$