PNL - AN OVERVIEW

On the other hand, the gamma PnL is paid to you personally within the side, not on the option premium, but from your investing actions within the underlying you execute your hedging account.Kurt G.Kurt G. two,38944 silver badges1717 bronze badges $endgroup$ 3 $begingroup$ Thanks lots for taking the time to answer. As a result of your last equality

the discovered danger factors are in fact adequate to materially clarify the envisioned value alter of the placement and, if (2) the models utilized to estimate sensitivities to these hazard components are accurate.To make The 2 approaches comparable you ought to think of investing/borrowing $PnL_1$ at rate $r$ making sure that it stays inside the