# Probability and Statistics in Quant Finance

Certain types of traders attempt to repeatedly buy and sell the same asset for a profit over a short time period, such as high-frequency “market makers”. For example, if you can repeatedly sell a stock for $8.50 and buy it for$8.49, you will make \$0.01 each time. This is known as arbitrage.

If this transaction succeeds with probability 99%, about how many times can this transcation be executed before the probability of at least one failure exceeds 50%?

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