Comment on Open thread, Aug. 10 - Aug. 16, 2015

Tue, 11 Aug 2015 20:53:18 GMT

toy model

Oh, I thought we were talking about reality. EMH claims to describe reality, doesn't it?

As to toy models, if I get to define what classes of investors exist and what do they do, I can demonstrate pretty much anything. Of course it's possible to set up a world where "a suitably defined investor cannot make money but can lose money".

And deep OOM options are diversifiable -- there is a great deal of different markets in the world.

Discuss