$ Within the "do the job scenario" you liquidate the portfolio at $t_1$ realising its PnL (let me simplify the notation a tad)$begingroup$ For an alternative with cost $C$, the P$&$L, with regard to modifications on the underlying asset price tag $S$ and volatility $sigma$, is specified byAt the end of the day, the EV/Avg(PNL) boils down to iv vs r