Multiple Choice
The Intrade predictions market trades contracts ranging in value from $0 to $10 for a number of political, economic, and cultural events. A contract that pays $10 if Democrats win control of the United States Senate in the next election, currently trading at $6.26, means that the market predicts the probability of a democratically controlled Senate after the next election is:
A) 6.26%.
B) 62.6%.
C) 0%.
D) 10%.
Correct Answer:
Verified
Correct Answer:
Verified
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