Question

3. Leeson’s position was risky, but if it weren’t for the Kobe earthquake, would his strategy...

3. Leeson’s position was risky, but if it weren’t for the Kobe earthquake, would his strategy have been successful?

Homework Answers

Answer #1

It is indeed quite to tell that if his trading strategy will be successful or no if the Kobe earthquake has not happened. Leeson’s trading strategy was actually based on his assumption that Nikkei 225 would appreciate in the future and also will not fall below 18,000 points. Lessen even got to implement these moves because he firmly believed that the Nikkei would not fluctuate too much in the near future. Taking all these situations into consideration, I believe that he can get to lose a lot of amount from his trading strategies even without the Kobe earthquake since there are so many ways where his trading strategies can go wrong.

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