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Students Form Commodity Pool to Learn about the Futures Market
Author(s) -
Tierney William I.
Publication year - 1989
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/11.2.289
Subject(s) - futures contract , commodity , commission , commodity pool , financial economics , economics , class (philosophy) , experiential learning , futures market , business , finance , psychology , mathematics education , computer science , institutional investor , corporate governance , artificial intelligence , global assets under management
Commodity paper trading games are widely used to give students experience in trading. One weakness of these games is that there are no monetary and only minor emotional consequences resulting from the students' trades. To simulate actual trading more realistically, a Student Commodity Pool (SCP) was organized at Kansas State University. Twenty‐nine students contributed $100 each to a pool account, formed groups to research and present trade recommendations and then traded actual futures and options contracts. As an experiential learning method, most students gave the class high marks. Other instructors may be able to establish SCPs with approval from the Commodity Futures Trading Commission.