Thus option holders often lose all their investment does

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(a) In a poker a game with six players, you can expect to lose 83% of the time. How can this still be a martingale?

(b) In the options market, call options expire unexercised over 80% of the time. Thus the option holders frequently lose all their investment. Does this imply that the options market is not a fair game? Not a martingale? Not a submartingale?

Reference no: EM13475594

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