December 26th, 2011 09:10 PM ET 2 years ago  Place your bets:
Company proposes options market for elections  (CNN) - As soon
as next week, a new market may open, where anyone can place bets
on the outcome of upcoming political contests.  A small trading
exchange in Chicago, the North American Derivatives Exchange
(Nadex), has asked federal regulators for permission to sell
options tied to the results of various 2012 elections -
including the U.S. presidency, control of the Senate, and
control of the House of Representatives.  Here's how it would
work: Let's say today you bought an option on Former
Massachusetts Gov. Mitt Romney winning the presidency for $45.
If he won, you would get $100, meaning a profit of $55. If he
lost, you would get nothing.  You could also buy and sell the
options before the contest is over. For example, you could buy a
Ron Paul option today at $10, and if his options started trading
higher - say at $15 - you could decide to sell, and pocket your
$5 profit.  A limited market already e