Hacker News new | ask | show | jobs
by socketnaut 2225 days ago
I see, so you're saying the expected profit on the trade is $0 assuming an efficient market and ignoring trading costs? Your comment is confusing the way it's worded because the expected value of the option is non-zero.
1 comments

Ah, sorry for that. I meant E[return on option - cost of option] ~= 0.