# Zero-sum game (with spoiler)

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 862280.  Sat Nov 05, 2011 4:17 pm With spoiler, sorry, allowing me to skip chatting boys with toys: Why is this popular definition wrong, a classic case of General Ignorance? Or this source? But why, on the other hand, is somebody claiming that options trading isn't a zero-sum game also wrong? Example, excluding costs as usual: Quote of share XYZ: 10.20 Ms. A pays 0.13 (open buy) for a call option (open buy), i.e. the right to obtain 1 share XYZ for 12.00. Mr. B sells (open sell) the call option, receiving the 0.13 Quote of share XYZ: 12.50 Ms. A sells (close sell) the call option, receiving 0.90 Mr. B buys (close buy) the call option, paying the 0.90 Ms. A gained 0.90-0.13=0.77 Mr. B lost 0.13-0.90=-0.77 0.77-0.77 equals 0, indeed it's a zero-sum game Rotate your screen 180 degrees to see the back of your screen. .nac uoy sa tcartnoc noitpo ynam sa gnilles yrt ,0.2 noisrev sggiB einnoR emoceB ?sselhtrow deripxe tcartnoc eht dna 09.0 deveicer eh fi % ni IOR s'B .rm eb dluow tahw ,tnemeriuqer nigram hcus on saw ereht fI .00.2 fo tnemtsevni na htiw 77.0 tsol B .rm dna ,31.0 fo tnemtsevni na htiw 77.0 denrae A .sm ,00.2 saw desu nigram eht fI .emag mus-orez a eb tonnac ti os ,IOR s'A .sm hctam t'nseod IOR sih ,nigram hsac a desu B .rm fI .tiforp a denrae evah yam (00.21 won erahs ,77.0 ta hguob noitpo ,31.0 ta dlos noitpo ,00.9 ta thguob erahs) B .rm dna (77.0 ta dlos ,31.0 ta thguob noitpo) A .sm htob ,noitagilbo elbissop sih gnirevoc noitpo rehtona ro ,noitisop sih egdeh ot erahs a desu .B .rm fI .gnigdeh emos desu ("evah yam" ot desoppo sa) tsum eh esuaceb ,gnorw si noitcasnart eht degdeh evah yam relles eht esuaceb emag mus-orez a t'nera snoitpo taht mialc ehT .laed eht fo trap a tuo tfel er'uoy esuaceb sfeiht era spohs tenretni taht snaem hcihw ,pohs tenretni emos ot 00.01 gniyap htiw elbarapmoc eb yam emag mus-orez a era snoitpo taht mialc ehT .emag mus-orez a t'nera snoitpo ,noitisop sih egdeh ot ZYX erahs a sesu B .rm nehw emag mus-orez a ton s'ti ecniS .ytiruces emos gnidivorp sedulcni syawla noitcasnart lles nepo s'B .rM .noitcasnart lles nepo s'B .rm sedulcni syawla tahT .noitcasnart elbissop tsellams eht ot deziminim eb nac emag mus-orez dilav A .orez t'nsi tiforp+tiforP .%22.62+ tiforp a eb dluow IOR s'B .rm ,snoitagilbo sih revoc ylluf ot ,nigram hsac a fo daetsni ,00.9 ta thguob ZYX erahs a dah B .rm fI .%5.83- tuoba si IOR s'B .rm ,00.2 saw nigram hsac eht fI .nigram eht ,noitisop hsac a evah ot dah tsael ta B .rM .%65.58- ton si ylniatrec IOR s'B .rm tub ,%13.295 eb yam A .sm fo (IOR) stnemtsevni fo nruter ehT .egdeh a ,pu ekam ro ,emussa ot nosaer on s'erehT .deriuqer s'ti ,(!desu yllanoitnetni ,sey =>) lanoitpo t'nsi gnigdeh tuB .egdeh elbissop a semussa ti esuaceb ,gnorw osla s'ti tuB .dab taht t'nsi emag mus-orez a t'nera snoitpo taht mialc denoitnem ehT .emag mus-orez a t'nera snoitpo oS .yaw taht krow t'nseod ti esruoc fO .reveroF ?dnalsi laciport a ot sdneirf fo sdneirf dna dneirf dna ylimaf ruoy htiw evom dna ,yletaidemmi hsac eht tcelloc ,stcartnoc noitpo noilliz a gnilles yrt uoy t'nod yhw ,emag mus-orez a saw ti fI !0.2 noisrev sggiB einnoR emoceB

 862292.  Sat Nov 05, 2011 5:52 pm I think the answer approaches 5.7 over a period of 20 years...

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