Hilbert's Hotel: The Infinity Paradox
Update: 2025-09-15
Description
Dr. Jim presents Hilbert's Hotel, a mathematical paradox demonstrating the abstract concept of infinity through a thought experiment about accommodating guests in a hotel with infinite rooms. The paradox illustrates solutions for accommodating new guests by moving existing guests according to mathematical formulas - from simple room reassignment to using prime number powers for multiple infinite busloads of guests. The segment connects this concept to options trading, specifically undefined risk strategies that theoretically carry "infinite risk." While theoretical infinite losses exist with short calls or strangles, traders typically quantify risk through practical measures like buying power effect or CVAR rather than worrying about truly infinite losses.
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