I was reading the Wikipedia article about the Black-Scholes model, and it says this:
The key financial insight behind the equation is that one can perfectly hedge the option by buying and selling the underlying asset in just the right way and consequently "eliminate risk". This hedge, in turn, implies that there is only one right price for the option, as returned by the Black–Scholes formula (see the next section).
Does this mean that an option is priced in such a way that the buyer and seller of the option should not turn a profit or a loss?
Also how would one hedge the option through buying and selling the underlying asset in order to eliminate risk?