Hedge Question

Tunes · 05-20-2008, 02:34 PM

Before the year, I bet $200 to win $2400 in the Penguins to win the Cup. With the Wings -160 in the Final, what's the hedge bet on them that will give me the highest payout no matter who wins?

Thanks -

LT Profits · 05-20-2008, 03:16 PM

If you truly don't care who wins, you could lock up about $850 if you bet 1,552 to win 970

Ganchrow · 05-20-2008, 03:34 PM

Quote:

Originally Posted by LT Profits

If you truly don't care who wins, you could lock up about $850 if you bet 1,552 to win 970

You might have made a slight computational error on this one, LT. Betting $1,552 on the Wings to win $970 would only yield $770 in the event of a Wings victory versus $848 otherwise.

If the OP were to bet $1,600 to win $1,000 he could guarantee $800 profit irrespective of the outcome.

See my Arbitrage Calculator.

LT Profits · 05-20-2008, 04:07 PM

Sorry, for some godforsaken reason, I inputed 120 as the risk on Pitt instead of 200. My bad.

Ganch is of course 100% correct.

Tunes · 05-20-2008, 04:11 PM

You guys rule. Thanks for that....I really appreciate this -

Ganchrow · 05-20-2008, 05:56 PM

Quote:

Originally Posted by LT Profits

Sorry, for some godforsaken reason, I inputed 120 as the risk on Pitt instead of 200.

I think it's rather clear.

You entered 120 because God hates you.