for nye

[KrazyHorse]

^Channeling my manager^

[Al B. Sure!]

Sound like one of my finance professors haha.

If I remember correctly, a straddle is when you buy a put and a call with the same strike price in order to profit from an increase in volatility. So the payoff diagram would be like a big V, with the bottom of the V being at the strike price, and the options being in the money when the market price is either > strike price+price of the call or the market price is < strike price-price of put.

Would that expected return be strictly zero?

[KrazyHorse]

The risk-neutral expected discounted payoff from any options strategy is the cost of entering into the position. It is not 0.

And this has nothing to do with the real-world expectation of payoffs.

[Kuciwalker]

Sound like one of my finance professors haha.

If I remember correctly, a straddle is when you buy a put and a call with the same strike price in order to profit from an increase in volatility. So the payoff diagram would be like a big V, with the bottom of the V being at the strike price, and the options being in the money when the market price is either > strike price+price of the call or the market price is < strike price-price of put.

Would that expected return be strictly zero?

Not in general. You probably wouldn't want it if it were.

And I think you're kind of confused with how a straddle actually works if you think it would.

Why should E[|ST - K| - C0 - P0] = 0?

[Dauphin]

Stop arguing with Kuci about this. His point is tangential. The real point is that SOMEBODY pays the taxes, and as everybody who knows anything knows, it doesn't matter which side of a transaction you collect the tax on.

I don't care whether you want me to stop debating minutiae. I post here if I'm bored, I get enough real things to concern myself about at work.

[Dauphin]

... but are there significant real-world exceptions to that rule? If there aren't, you might as well be asking how this tax deals with people who are legally permitted to print their own money.

Interesting. How do these taxes effect Lewes?

http://news.bbc.co.uk/1/hi/england/sussex/7605639.stm

Interest free credit (and it may not even be redeemed).

[Kuciwalker]

Illegal in the United States

No State shall ... make any Thing but gold and silver Coin a Tender in Payment of Debts.

[Kuciwalker]

Also I don't understand how personal earned/unearned income taxes would interact with those at all. They're just a special form of gift card, no? Treat them as equivalent to cash (i.e. untaxed, as they are everywhere I've bought them in the US) and I don't see any major abuses.

[Dauphin]

Illegal in the United States

I forgot US law applied everywhere. If challenged, FCPA proves it applies everywhere.

Talking of illegal. It raises a question of gambling taxes. Tax was abolished on bets and winnings here a few years back. There's also no tax on prizes won on game shows, lotteries etc. In stark contrast to the US.

[Kuciwalker]

I forgot US law applied everywhere. If challenged, FCPA proves it applies everywhere.

Exactly.

[Tupac Shakur]

A consumption tax would allow us to expropriate the idle rich and baby boomers, in addition to dramatically increasing efficiency.

Win-****ing-win

#5 Google result for "consumption tax expropriate the baby boomers."