What is called a derivative investment


Problem

I. Were Valentine and Winthorpe's actions using inside information to hurt the "bad guys" ethical? Why or why not?

II. This film involved orange juice futures. This is what is called a "derivative" investment, and it is very risky. Should corporations and banks be allowed to invest in derivates? Why or why not. In your answer, consider the FDIC: the FDIC (funded by the taxpayers) insures all accounts up to $250,000 per person per bank.

 

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