A note on odds in the cattle futures market

  • Seth C. Anderson
  • John D. Jackson
  • Jeffrey W. Steagall


This paper investigates the odds of generating a 100-fold return in the cattle futures market. We employ cattle futures data for the period October 11, 1978, through July 31, 1979, to compute the probability of obtaining such a return. The tests are constructed to give the investor the benefit of the doubt whenever doubt exists. The most conservative finding is that the probability is one in approximately thirty-one trillion. Assuming that the return is made in the most efficient way possible, this probability falls to approximately 1.5×10−16.


Price Change Future Market Wall Street Journal Limit Move Future Contract 
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Copyright information

© Springer 1994

Authors and Affiliations

  • Seth C. Anderson
    • 1
  • John D. Jackson
    • 2
  • Jeffrey W. Steagall
    • 1
  1. 1.University of North FloridaJacksonville
  2. 2.Auburn UniversityAuburn

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