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A Commodity Market Simulation Game for Teaching Market Risk Management

Published online by Cambridge University Press:  05 September 2016

James N. Trapp
James N. Trapp*
Affiliation:
Department of Agricultural Economics, Oklahoma State University
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Abstract

The Market Risk Game is a computerized simulation game available for IBM PC and Apple II microcomputers that is designed to give realistic practice in making decisions in a risky market environment. It illustrates the use of hedging and put options to reduce risk in livestock and grain markets. It is best suited for individuals who have a basic understanding of commodity trading, but who need experience to solidify their knowledge to a functional level. Through the game, this is done without facing the risk of an actual investment or requiring the time involved in watching a market over an extended period.

Keywords

riskhedgingoptionssimulationgamemarketing
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 21 , Issue 1 , July 1989 , pp. 139 - 147
Copyright
Copyright © Southern Agricultural Economics Association 1989

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