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I was wondering if you would have time this week to meet with us and go over this scenario. E-mail or call me (56686) to let me know if you will be available. Thanks! Laura de la Torre Accenture Resources Houston, Texas Direct Dial 713.837.2133 Octel 83 / 72133 Laura A. de la Torre To: dutch.quigley@enron.com 11/08/2001 09:46 AM cc: Mery L. Brown/Internal/Accenture@Accenture, Ann S. Chen/Internal/Accenture@Accenture Subject: Aluminum Smelter Plant Scenario Attached is a scenario that Phillip created and we were hoping to review with you at last week's and today's meeting. We are aware of how hectic things are right now at Enron, so we completely understand you having to cancel our meetings. However, if you could please review the attached scenario and return it to us with your comments as soon as possible, it would be greatly appreciated. For your review: 1.Please fill in the positions associated with each risk bucket for natural and initial positions for gas and aluminum as well as the positions created by buying or selling each instrument 2.If aluminum has different risk buckets than natural gas, please add them along with the associated positions for natural, initial, and those created by the instruments 3.Is the wording of the instrument names correct and how do we denote that they are for aluminum rather than natural gas? 4.We (not Phillip )made up all of the numbers on the pricing screen and the settlement prices so please feel free to change any/all numbers that are unrealistic or contradict the optimal hedge (the optimal hedge turns out to be a loss based on our numbers!) 5.In the scenario overview, we made up the locations Midwest and Permian---change if unrealistic and please add appropriate locations for the instruments on the pricing screen 6.The optimal hedge given by Phillip is listed on page 2; Based on the optimal hedge, please specify the payout and amount received for each instrument as well as the overall P&L 7. In the scenario overview, do you know if 20,000MMBtu creating 2,000 tons of aluminum is a realistic conversion? 8. Could you please explain WHY each instrument creates/covers a position for some risks and not others. 9. Please list any information that was not included and that the learner would need in order to hedge this scenario In your return e-mail, if you could also please give us a definition for natural and initial position. Make your changes and answers directly onto the word document. When you get this, if you could please e-mail or call me (ext. 56686) with when we can expext to get this back from you and with any quesitons you might have. Thank you very much for helping us with this. (See attached file: Scenario 4.doc) Laura de la Torre Accenture Resources Houston, Texas Direct Dial 713.837.2133 Octel 83 / 72133 This message is for the designated recipient only and may contain privileged, proprietary, or otherwise private information. If you have received it in error, please notify the sender immediately and delete the original. Any other use of the email by you is prohibited. - Scenario 4.doc
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