So if a standard $ 100 contract costs $ 40, the market believes
the likelihood of that particular event to be around 40 %.
Not exact matches
He is far from alone, this is a giant industry led by reinsurance companies trying to place their bets properly, and, needless to say, getting repeatedly burned; who can ever calculate the
likelihood of Libyas or Fukushimas — and even if you can it is the
particular modalities
of the unfolding
event rather than the occurrence
of the
event itself that determine the impact and outcome.
Like the risk
of an accident in a
particular new class
of power station, such a probability for a single future
event can not be calculated objectively; it is an expression
of a subjective assessment
of the
likelihood based on limited available knowledge.
The bookie is glad
of all the publicity so isn't bothered about the profit margin on this
particular event so his odds reflect the true
likelihood that any
particular year will win.
In
particular, over NH land, an increase in the
likelihood of very wet winters is projected over much
of central and northern Europe due to the increase in intense precipitation during storm
events, suggesting an increased chance
of flooding over Europe and other mid-latitude regions due to more intense rainfall and snowfall
events producing more runoff.
Further, the
likelihood of tension among siblings when mothers have experienced a recent health
event is greater when siblings perceive that their mothers prefer
particular children as future caregivers, regardless
of which child they prefer.
In this way, smart data can be utilized as a sort
of snapshot
of past and present
events to provide perspective on the possibility
of future outcomes — in
particular, the
likelihood of any given homeowner looking to sell their home within the next 12 months.