I am hoping that someone can help me understand better the following passage from "Conquering Risk:"
"Anytime the move is more than the betting commission, the player has an advantage at the old number. For example, consider the NBA Market of Jazz + 3 which steams down to +2. If each half-point is worth about 10 cents, the jazz +3 is 20 cents off market. If +2 is the true market price and you are laying -110, the Jazz +3 has about ten cents of value (a little over four percent) over the commission-free market price of Jazz +2."
My question is two fold, how is he coming up with the 4% of value based off of the ten cents of value with +3 and why is he comparing it to the commission-free market price since we typically always have to pay the commission?
I know the player laying -110 gives the house a 4.5% edge so the 20-cent move is shifting those odds to the player (hence the 4% of value) but is there some type of formula that can be applied to figure this out?
Any help would be appreciated. Thank you.