Event Contracts vs Stock Options
Event contracts vs stock options, worked on one matched pair: a YES at 70 cents against the call vertical that costs the same and caps at the same place.
Filtering by topic #prediction markets · clear
Event contracts vs stock options, worked on one matched pair: a YES at 70 cents against the call vertical that costs the same and caps at the same place.
How market makers quote prediction markets: why a payoff capped at $1 makes inventory risk computable up front, and why spreads widen into resolution.