Name/s: CERCADO & SARMILLO Group No.

: 15

ACTIVITY : Movie Analysis

“Rogue Trader (1999)”

MOVIE LINK: https://www.youtube.com/watch?v=SclDzvDWrds

Questions to ponder

1. What caused the second-oldest bank to collapse in 1995?

-In February 1995, the collapse of Barings Bank was due to massive losses caused

by a single rogue trader. In unauthorized, uncovered speculative transactions, Nick

Leeson gave over $1 billion to dampen cash reserves of the venerable merchant

bank.

2. What actions would you take if you were in Nick’s shoes to keep the bank from

collapsing?

-If we were in Nick’s shoes, we would enforce certain good manners and have

provision because it is not easy to be a financial manager. Also, I will a refrain form

engaging ourselves in certain wrongdoings as fraud and deception because it is

ethically wrong to do these things.

3. Is this film worth watching in present time? Explained.

- Yes, because in a market like that, where you rely on the future price of the assets

and wherever you have to invest, risks will arise and the more you invest, the riskier

it is. And this film is worth to see now because it has a moral lesson to be learned
 that can be useful when saving and minimizing risk at all times. It is important to

be exposed in these kind of story for us, especially that we are in a business-

related course and a future investor to be able to be an expert in this field.

4. What have you learned from the video?

-We have learned that it is very hard to invest and there will always be risk and

circumstance you will face. We should take responsibility and accept that loss will

happen anytime. We can still handle them anyway by having a financial supervisor

with a correct approach to decision making.

5. If you have given a chance to invest, would you prefer to invest in derivatives?

Why and why not?

- Yes, derivatives can be a good option to invest in. But it can be harmful to your

investment because of its natural complexity. You need to know how to use this

to your advantage to reduce the risk of derivatives and turn it into good

investments. However, derivatives are a powerful risk management tool. It can

be used as financial assets and can be used to make heavily liquid trades that

are customized to a particular viewpoint. Derivatives has proven to be a very

profitable choice for investors.