|The Downside of Wrong Expectations|
|Subject||Copper trade shows the downside to financial derivatives.|
short-sell, copper, China, price
|Full Article||If you have an InfoTrac or BCRC access code, click on the appropriate source to login and view the full text article.
Reference ID: A138819692
A Chinese copper trader allegedly sold 200,000 tons of copper short, assuming that the price would fall and that he would be able to buy back the orders at a lower price. The price didn’t fall. And now no one can find him or all the copper he owes.
|Source||“Crouching trader, leaping prices.” The Economist. 17 November 2005. http://www.economist.com|
|Instructor Discussion Notes|| Discussion
These notes are restricted to qualified instructors only. Register for free!
Return to the Resource Markets Index
©1998-2005 South-Western. All Rights Reserved webmaster | DISCLAIMER