Nick Leeson’s now infamous trading strategies in 1994 and 1995 at Barings Bank focused on calculated bets on the Nikkei 225. Which of the following trading strategies is not the reason for the staggering losses that ultimately forced Barings into bankruptcy?
　　I.          Long-long futures arbitrage.
　　II.        Long straddle.
　　A.        I only.
　　B.        II only.
　　C.        Neither I nor II.
　　D.        Both I and II.
　　Answer: B
　　After incurring huge trading losses, Leeson made an effort to recover those losses by abandoning his original hedged position in a long-short futures arbitrage strategy and initiated a long-long futures position on two trading exchanges. As well, one of his other trading strategies was selling straddles on the Nikkei 225 (which would have been profitable had the underlying index remained relatively unchanged).