What arguments are there against PSI's claims?
What will be an ideal response?
First, having a large open interest in the futures market is not the same as having a large industry market share in physical goods. Goods have relatively high production and distribution costs, and relatively long production and distribution cycles, which means these products are supplied to the market rather slowly. It is possible to corner a physical market by purchasing a large portion of the available supply, storing it, withholding delivery, and driving up the product's price. By contrast, it costs almost nothing to create a new futures contract, and it can be delivered instantaneously. Futures contracts cannot be stored with the intent to later withhold them from the market. As a result, controlling a large share of the open interest carries almost no power to restrict supply. Moreover, most market participants holding long futures positions reverse
(i.e., sell) them before maturity.
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Acme Corporation has established a nonqualified deferred compensation plan with life insurance as the funding vehicle. Acme currently has 100 employees, 90 of whom work full time. Which of the following individuals must be covered by the plan?
A) Only Acme's executive officers and directors B) All of Acme's full- and part-time employees C) All of Acme's full-time employees D) Any employee, officer, or executive that Acme selects
Which of the following is true regarding contract validity?
A) A unilateral contract is unenforceable. B) A voidable contract is one that has no legal effect because one of the essential elements is missing. C) A voidable contract is one in which a party may avoid his/her obligation under that contract. D) An executory contract is also unenforceable. E) A void contract is one where a party has the option to avoid his/her contractual liability.