this

An efficient market in theory has no mis pricing because of arbitrage (ie they are quickly and efficiently removed)

The fact that it sounds like there may be mis pricing if the experience continues the way it has done so far this season, suggests the market is not efficient due to no arbitrage opportunities existing, was my point (granted it was written rather sloppily late last night though)

"Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time. "

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ie possible mis pricing opportunities exist (due to there being no arbitrage) not arbitrage opportunities as such

I will certainly be more careful in future though (not to sloppily abbreviate terms when half asleep), don't my words used against me in a slander case or anything...

Posted By: essexcanaryOTBC, Sep 16, 12:05:58