THE BEST SIDE OF PNL

Which will depend on the rebalancing frequency. But "envisioned P&L" refers to an average over all doable price paths. So There's not necessarily a contradiction right here. $endgroup$For making The 2 solutions similar you must consider investing/borrowing $PnL_1$ at charge $r$ making sure that it stays from the process right until $t_2,.$ At that