aggregate multipliers

description

prototypes

example 1: share = 10 aggregate call = 20 -> 10x = 20 -> x = 2 aggregate put = 5 -> 10x = 5 -> x = 1/2 therefore by reciprocity: put multiplier 0.5 == call multiplier 2.0 -> True put call 1/2 <-> 2/1 example 2: share price = 10 calls | strike ask open | bet confidence commitment 10 4 1 | 14 4 64 15 2 1 | 17 2 34 20 1 1 | 21 1 21 call bet = strike + ask confidence = ask commitment = bet * confidence commitment sum = 64 + 34 + 21 = 119 confidence sum = 4 + 2 + 1 = 7 union = confidence sum / commitment sum = 119 / 7 = (>=) 17 (aggregate break even) union multiplier = union / share price = 17 / 10 = 1.7x puts | strike ask open | bet confidence commitment 5 2 1 | 3 2 6 10 4 1 | 6 4 24 put bet = strike - ask confidence = ask commitment = bet * confidence commitment sum = 6 + 24 = 30 confidence sum = 2 + 4 = 6 union = confidence sum / commitment sum = 30 / 6 = 5 put union multiplier = union / share price = 5 / 10 = 1/2 therefore: before reciprocity: calls = 1.7x puts = 0.5x after reciprocity: calls = 1.7x puts = 2.0x Therefore the puts are more expensive than the calls and thus are perhaps favored.