On May 21, 2012, you could have purchased a futures contract from Intrade for a price of $5.70 that would pay you $10 if Barack Obama won the 2012 presidential election. This tells you ________.
A) that the market believed that Obama had a 57% chance of winning
B) that the market believed that Obama would not win the election
C) nothing about the market's belief concerning the odds of Obama winning
D) that the market believed Obama's chances of winning were about 43%
Correct Answer:
Verified
Q22: Single stock futures, as opposed to stock
Q23: Which one of the following refers to
Q24: An established value below which a trader's
Q25: Futures markets are regulated by the _.
A)
Q26: Initial margin is usually set in the
Q28: The most actively traded interest rate futures
Q29: You are currently long in a futures
Q30: Margin must be posted by _.
A) buyers
Q31: Which one of the following exploits differences
Q32: Which of the following provides the profit
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