Consider the following three tickets: ticket A pays $10 if ______ is elected as president, ticket B pays $10 if ______ is elected, and ticket C pays $10 if neither is elected. (Fill in the blanks yourself.) Could the three tickets sell for less than the present value of $10? Could they sell for more? Try auctioning off the tickets. What are the implications for MM’s proposition 1?

AppendixLO1