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Parlay math in American odds

A sportsbook prices two independent 50/5050/50 events at American odds of 110-110 each (risk \110towinto win$100$). A parlay pays only if both legs win.

Convert to decimal, find the fair and offered parlay prices, and compare the effective margin to a single bet.

Show a hint

Convert 110-110 to a decimal price first, then treat the parlay exactly like the multiply-the-odds problem.

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

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