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On May 21, 2012, You Could Have Purchased a Futures

Question 27

Multiple Choice

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%

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