Suppose you bought a case of good Bordeaux in the futures market for $20 a bottle. The wine now sells at auction for about $75. You have decided to drink a bottle. Which of the following best captures your feeling of the cost to you of drinking the bottle? (The percentage of people choosing each option is shown in brackets.) (a) $0. I already paid for it. [30%] (b) $20, what I paid for it. [18%] (c) $20 plus interest. [7%] (d) $75, what I could get if I sold the bottle. [20%] (e) –$55. I get to drink a bottle that is worth $75 that I only paid $20 for so I save money by drinking this bottle.
