MobLab
Instructions
Aa

# Asset Market

## How to Play

• Choose a price: click BUY to submit a Bid or SELL to submit an Ask
• You sell a share if:
• you click "SELL AT THE HIGHEST BID" OR
• You buy a share if:
• you have the highest Bid and someone either clicks "SELL AT THE HIGHEST BID" or Asks less than your Bid.
• You can only sell shares you own or buy shares with money you have

## Payoff Computation

• At the end of each round:
• Dividend value determined; each POSSIBLE DIVIDEND is equally likely
• You earn dividend on each share you own
• You earn interest on the cash you have
• Interest rate as indicated
• End of final round: receive REDEMPTION VALUE in cash for each share you own
• Total payoff = end of game cash

## Example

• Redemption Value=\$2; Interest rate=10%
• Begin final round: \$77.40 and 4 share
• Final round: sell 1 share for \$2.60; Dividend=\$0.40/share
Payoff = Cash(1+int rate) + dividend*shares + redemption*shares
\$95.20 = (\$77.40+\$2.60)(1.1) + \$0.40*(4-1) + \$2.00*(4-1)