DETAILS, FICTION AND PNL

$ Now you say $V_t$ could be the risky asset. Pretty baffling. Edit the post for making this crystal obvious. We can easily think of what on earth is a PnL once we understand what We've invested in. $endgroup$For making the two methods equivalent you need to imagine investing/borrowing $PnL_1$ at charge $r$ to make sure that it stays during the tec