Suppose That It Is Summer 2012 and President Obama Is

question 25

Multiple Choice

Suppose that it is summer 2012 and President Obama is running for reelection. In the Iowa Electronic Markets, a share of Obama is selling for $0.54 and will give $1 if Obama wins the election. Market participants believe that Obama's probability of winning reelection is:

• A) 4.6 percent.
• B) 5.4 percent.
• C) 54 percent.
• D) 46 percent.

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Definitions:

Lowest Bid

The least amount of money offered by a contractor to complete a specified project or job in a bidding process.

Stock Exchange

A marketplace where securities, such as stocks and bonds, are bought and sold.

Sale of Land

The transaction or process whereby ownership of a parcel of land is transferred from one party to another.

Browsewrap Agreement

An online agreement where acceptance of terms and conditions is implied through the use of the website, without requiring an explicit agreement from the user.