2026-01-10.14.22.19
In a market with a binary outcome, either 0 or 1, I can trade two assets. One will end at a price of $1 the other will end at a price of $0. The market can be traded on for an interval of time. At any point in time the two assets trade independently. Their price will be somewhere between $0 and $1. What is the implication when the price of the two assets does not equal $1?
Answer: Arbitrage