That isn't the same as the pnl equalling the worth paid, as an alternative the predicted pnl in the system will be the same as the option benefit. $endgroup$Stack Trade community is made up of 183 Q&A communities together with Stack Overflow, the largest, most dependable on line community for builders to master, share their knowledge, and Create th

When you hedge just about every minute, You would not comprehend the total pnl of the much larger SD moves however you do seize the complete pnl on the more compact intraday moves. Conversely, if You merely hedge when every day, you will not comprehend the full pnl with the more compact intraday moves (like in your instance) but you should in retur