We give a monadic semantics in the category of FM-cpos to a higher-order CBV language with recursion and dynamically allocated mutable references that may store both ground data and the addresses of other references, but not functions. This model is adequate, though far from fully abstract. We then develop a relational reasoning principle over the denotational model, and show how it may be used to establish various contextual equivalences involving allocation and encapsulation of store.
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