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Homework answers / question archive / Harry used an automated program to place thousands of future contracts on the Chicago Mercantile Exchange at different times of the day
Harry used an automated program to place thousands of future contracts on the Chicago Mercantile Exchange at different times of the day. The purpose is to generate large buy orders. However, Harry had no intention to follow through these orders. Once the futures price went up, Harry cancelled the orders and then sold all the future contracts on hand at the higher market price. Which category of unethical behavior would you put this example into and why? Word guidance:
I would be placing it under PRICE MANIPULATION because it is an unethical approach to inflate the price because he has no intention to enter into the contract so he had tried to inflate the price and he had cancelled the order, so it is reflecting a manipulation of price on the part of Harry.
