Question
Watch the video-clip and read the caption the movie Trading Places, a classic American comedy starring Eddie Murphy and Dan Ackroyd. In the video the
Watch the video-clip and read the caption the movie Trading Places, a classic American comedy starring Eddie Murphy and Dan Ackroyd. In the video the Duke brothers are trying to corner the orange juice market using inside information (information not available to the general public; use of such information for stock market purchases is illegal under federal law). In the clip, Murphy (Valentine) and Ackroyd (Winthorpe) turn the tables on the Dukes, by bankrupting them, while they themselves got rich. However, Murphy and Ackroyd, too, used inside information.
Looking at this from an ethics perspective, consider the following:
1. Were Valentine and Winthorpes actions using inside information to hurt the bad guys ethical? Why or why not?
2. 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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