Other examples in the entertainment industry - say there exists insurance that your movie will earn a minimum revenue say 25 million usd. Your competitor simply buys those contracts and then trash talks your movie on the opening night ( by simply paying out bloggers and amateur journas some pittance sum of money ). Your movie tanks and so the contracts get exercised and your competitor makes a whole lot of money. So the next time around, you make a shitty movie to begin with. Then YOU buy the contracts, wait for your shitty movie to tank and cash in the contracts! This actually happens sometimes in Bollywood, though not in the exact fashion I described but in a more shady fashion.
Other examples in the entertainment industry - say there exists insurance that your movie will earn a minimum revenue say 25 million usd. Your competitor simply buys those contracts and then trash talks your movie on the opening night ( by simply paying out bloggers and amateur journas some pittance sum of money ). Your movie tanks and so the contracts get exercised and your competitor makes a whole lot of money. So the next time around, you make a shitty movie to begin with. Then YOU buy the contracts, wait for your shitty movie to tank and cash in the contracts! This actually happens sometimes in Bollywood, though not in the exact fashion I described but in a more shady fashion.