Abstract: In this activity the students and instructor played the Pit trading game. In this game the player who reaches 500 points is the “winner”. This takes several hands of play to accomplish. At the sound of the “opening bell” players became a trader trying to corner the market on one of 5 commodities (worth various points). A player corners the market when they have all 9 cards of the same commodity. In addition to the 45 commodity cards in play, their was also a Bull and a Bear card. The Bull card could be used as a wild card so that one could corner the market with only 8 commodities and the bull. Both the Bull and Bear card carried a penalty of -20 points if they were in a players hand when someone else cornered the market. Once the opening bell was rung, players traded by holding out a specified number of cards (from 1 to 4) and shouting that number (e.g. “Two, Two, Two!”). Players traded with someone else calling out the same number or lowered or raised their bid to match another player. The cards were not visible to the other player until after trading and players could only trade one commodity (and/or the Bull and Bear) in one grouping.
Authors: J’Lee Bumpus, Associate Professor of Mathematics, Austin College
Description of Integration into Course: Throughout the course we make a crucial “no arbitrage” assumption which relies on investors always being rational. This game tested this notion by forcing students to make fast-paced trading decisions.
Course(s) used in and enrollments: MATH 475 – Mathematics of Finance (4 students)
Behaviors Taught: Problem Solving, Communicating Ideas, Problem Solving
Leadership Theories Used: Situational Awareness, Influence without Authority
Time Required for Activity: 80 minutes
Date Posted: June 23, 2017
Date Modified: None
Copyright and Permission to Use: Licensing
Links to Similar Activities: None