The Amazon Guide

How do Dan Aykroyd and Eddie Murphy’s characters bankrupt the Dukes at the end of “Trading Places?”

I cannot figure out entirely how Louis and Billy Ray manipulate the frozen orange juice concentrate crop report to bankrupt the Duke brothers. I think they know the crop will be plentiful so they promise to sell the commodity to others as the price goes up. How do they sell something they don’t own? Do they own it at the end of the day? I think they make their money on the difference in the price they sell it for and the price it is at the end of trading. Any help would be appreciated!

The answer in on word is Arbitrage, the buying of something cheap and then the selling of that something for more money before the bell rings to end the buying and selling period.

The boys invested their money in buying Orange Juice futures early at a regular price in the early session. The Dukes want to buy all the futures they can so they will pay for them at higher price than the boys paid thinking the futures will only go higher in price after the futures report is read. Right before the futures report is annnounced the boys sell their futures for the highest price possible. The report is read and it is good meaning the supply of OJ will be plentiful and the price should go down instead of up like the Dukes think. Suddenly everybody has loads of futures at a high price they need to get rid of before they have to settle up at the bells end. The Dukes are the worst of all. When the price drops to half of what it started at the boys start buying back all the shares they can with all the money they made in the early session from everyone but the Dukes. The bell rings and the boys have secured a majore portion of the Orange Juice market at a fraction of the cost while the Dukes are stuck with a mountain of overpriced future contracts some of which were purchased on Margin, (credit), and according to the rules they have to settle up at bells end. The dukes owe more money that they have. Assuming the market stabilizes at more than the boys paid for their future, should they sell them they will be even wealthier. While the Dukes will only be poorer.

To simplify it the boys bought around $900,000 worth of futures which they sold for about $2,700,000, and when the prices drop they bought about $2,900,000 worth of futures gettin seven times as many shares as before, resulting in prices going back up 40% making that investment worth $4,000,000 less what they took on margin, so the wound up profiting $3,000,000 on the day and since it remains in futures it is not taxable..

Urban Trend Spirit Head Decanter $19.99 A glass decanter that’s preceded by horrifying folklore and legend, and looks simply bad to the bone. Our glass skull decanter lets you impress your friends, terrify your enemies, and grant you the power of life and death. Spirit head glass skull liquor decanter is crafted from hand-blown glass. Liquor decanter measures 8 x 4 and holds 27oz….

Saturday Night Live Dan Aykroyd Bass-O-Matic Refrigerator Magnet $1.49 …

Ghostbusters Magnet~ Ghostbusters Logo~ Approx 2.5 x 3.5 …

Tommy Boy (Holy Schnike Edition) $2.87 The late Chris Farley teams up with his Saturday Night Live pal David Spade for this road comedy about a perpetual screwup, Tommy Callahan Jr. (Farley), who tries to save the auto-parts store owned by his late father (Brian Dennehy). The latter’s dry-witted number cruncher (Spade) reluctantly joins the loud, awkward, but well-meaning Tommy in the mission, which is threatened behind the scenes by h…

The Blues Brothers (Widescreen 25th Anniversary Edition) $7.67 After building up the duo’s popularity through popular recordings and several performances on Saturday Night Live, John Belushi and Dan Aykroyd–as “legendary” Chicago blues brothers Jake and Elwood Blues–took their act to the big screen in this action-packed hit from 1980. As Jake and Elwood struggle to reunite their old band and save the Chicago orphanage where they were raised, they wreak enou…

Michael Jackson – History on Film, Vol. 2 $6.78 No Description Available.Genre: Music Video – SoulRating: NRRelease Date: 21-OCT-2003Media Type: DVD…

Exit to Eden [VHS] $9.98 Garry Marshall, the man behind Pretty Woman, has made two movies here. One is based on Anne Rice’s erotic novel of a fantasy island where dreams are fulfilled and sexuality is open to all, led by a congenial dominatrix (Dana Delany) and a glowing new recruit (Paul Mercurio of Strictly Ballroom). The other is a farcical comedy-action movie, which is what you saw in the ads. Savoy Pictures must have…

Driving Miss Daisy [VHS] $4.95 Winner of the Academy Award® for best picture of 1989, this gracefully moving drama, adapted from the hit play by Alfred Uhry, chronicles the 25-year friendship between a stubborn, aging Southern widow (Jessica Tandy) and her loyal chauffeur (Morgan Freeman). At first, the self-sufficient Miss Daisy is reluctant to accept the services of a chauffeur, but Hoke is quiet, wise, and tolerant, and as …

Coneheads [VHS] $14.95 …

2007 Dan Aykroyd Cabernet Sauvignon, Sonoma 750 ml Wine for sale from Lueken’s Fine Wine. Size 750 mL standard, Year 2007, Color red…