Mathematics, 19.03.2020 00:27 solidermorrison9209
A prediction market has been formed through which participants can bet with each other on the outcomes of the World Cup. One security in this market is priced at $30. This security gives its owner the right to $100 if Country A wins the World Cup and $0 otherwise.
Which of the following is true?
a. On average, the participants in this prediction market think Country A has a 30% chance to win.
b. On average, the participants in this prediction market think Country A has a 70% chance to win.
c. On average, the participants in this prediction market think Country A has a 90% chance to win.
d. On average, the participants in this prediction market think Country A has a 0% chance to win.
Answers: 1
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