$ Within the "work case" you liquidate the portfolio at $t_1$ realising its PnL (let me simplify the notation a tiny bit) $begingroup$ Assuming that you are Performing for your lender, there are three diverse P&Ls dependant upon the purpose/ use: The above variation I somewhat see as follows: after https://www.youtube.com/watch?v=qMmsQ4kKgY4