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An interesting note on the zero sum discussion, while the stock market clearly is not a zero sum game options on the other hand ARE zero sum. On the exercise d
by adamtmca 17y ago
An interesting note on the zero sum discussion, while the stock market clearly is not a zero sum game options on the other hand ARE zero sum.
On the exercise date the payoff for the buyer of an option that's in the money will exactly match the loss of the seller. Vice versa if it's out of the money. Kind of neat.