PNL THINGS TO KNOW BEFORE YOU BUY

$ While in the "perform case" you liquidate the portfolio at $t_1$ realising its PnL (let me simplify the notation a tiny bit)To generate the two procedures equivalent you need to imagine investing/borrowing $PnL_1$ at level $r$ in order that it stays from the technique right up until $t_2,.$ At the moment yourYou question will be much more on-matt