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Politics : High Tolerance Plasticity
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To: Berk who wrote (14458)6/16/2002 12:38:59 AM
From: Raymond Duray  Read Replies (1) of 23153
 
Re: the market maker who sells them becomes long so he will hedge by either doing the synthetic or selling enough calls to offset the delta position.

Not necessarily. He may inventory the risk, and move against the mark in the close. The market maker has both time decay and deception on his side. Max pain for the public is the object of the game.
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