Stuart_Armstrong comments on Consequences of arbitrage: expected cash - Less Wrong

5 Post author: Stuart_Armstrong 13 November 2009 10:32AM

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Comment author: Stuart_Armstrong 14 November 2009 09:17:10AM 0 points [-]

If you love the mini cooper, you'd buy it for £20 000; but never for £200 000, not matter how much you love it. Money contracts are similar, except arbitrage get even stronger, as the correct price of these contracts is canonical.