P1.T4.4. 4.2. Short selling in BSM

[eszaknyugat]

Hi All,

4.2. C. The short selling of securities with full use of proceeds is permitted (the dynamic hedging premise underlying Black-Scholes requires the ability to short sell).

In former forum thread David listed as BSM assumption (based on Hull):

1. The short selling of securities with full use of proceeds is permitted.

According to GARP text:
'Markets are frictionless. There are no restictrions on short sales or the use of short-sale proceeds.'

What does the full use of proceeds mean?

Thank you for your help,
eszaknyugat