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Enron Mail |
Liz/Carol
Attached is the email I received from Kevin Meredith, which details the current physical product option status on EOL, with examples. Marcus ----- Forwarded by Marcus Nettelton/NA/Enron on 05/03/2001 11:40 AM ----- Kevin Meredith/ENRON@enronXgate 05/01/2001 12:45 PM To: Marcus Nettelton/NA/Enron@ENRON cc: Subject: Physical options Marcus, I know this is quite an assortment of data, but I wanted to supply you with enough to be useful. We have no US physical option products built. We have plenty of US financial option products. If this information is confusing, please do not hesitate to contact me. German Pwr Phy Put - No products built A Transaction with Enron Capital & Trade Resources Limited, under which the Option Buyer determines, on the Exercise Date, whether, in case of a Put Option, it shall deliver and the Option Seller shall take and pay for the Contract Capacity at the Strike Price in respect of each hour during the term of the Transaction. The Contract Capacity shall be the volume submitted by Counterparty via EnronOnline. In case of a Call Option, the Option Buyer determines, on the Exercise Date, whether it shall take and pay for, and the Option Seller shall deliver, the Contract Capacity at the Strike Price in respect of each hour during the term of the Transaction. The Premium is payable by the Option Buyer and shall be the price submitted by Counterparty via EnronOnline multiplied by the total number of hours during the term of the Transaction multiplied by the specified quantity of electric power. German Pwr Phy Call - Product included A Transaction with Enron Capital & Trade Resources Limited, under which the Option Buyer determines, on the Exercise Date, whether, in case of a Put Option, it shall deliver and the Option Seller shall take and pay for the Contract Capacity at the Strike Price in respect of each hour during the term of the Transaction. The Contract Capacity shall be the volume submitted by Counterparty via EnronOnline. In case of a Call Option, the Option Buyer determines, on the Exercise Date, whether it shall take and pay for, and the Option Seller shall deliver, the Contract Capacity at the Strike Price in respect of each hour during the term of the Transaction. The Premium is payable by the Option Buyer and shall be the price submitted by Counterparty via EnronOnline multiplied by the total number of hours during the term of the Transaction multiplied by the specified quantity of electric power. The term of the Transaction shall be from 00:00 hours (prevailing Central European Time) on the Effective Date (or start date) to 00:00 hours (prevailing Central European Time) on the day following the Termination Date (or end date). The Effective Date (or start date) is 01 Jan 2002. The Termination Date (or end date) is 31 Dec 2002. The Delivery Point shall be on the RWE Netz High Voltage Grid. The price is quoted in Euro per unit of volume, which will be the Contractual Currency. The unit of measure against which the price is quoted shall be megawatt-hours (MWh) and the quantity shown shall be in MW's delivered in each applicable hour for the duration of the Transaction (the "Hourly Quantity'). The Transaction shall be for a Baseload profile, being the delivery of electric power at a steady rate between 00:00 hours (prevailing Central European Time) and 24:00 hours (prevailing Central European Time) (totalling 24 hours per day) on a calendar day. Electric power shall be delivered at a point, or points on the 380/220 kV level. The Option style and type shall be a European Call, ("EC"). The Exercise Date or Exercise Period shall be 13 Dec 2001. The Strike Price shall be 21.5 Euros/ MWh US SO2 EA Phy Opt - No Products built A Transaction with Enron North America Corp., under which the Option Buyer purchases a Call Option granting it the right, in return for payment of the Premium to the Option Seller, to buy from the Option Seller a quantity of SO2 Emission Allowances equal to the Designated Quantity at the Contract Price. The Option Buyer shall pay the Premium to the Option Seller within three Business Days of the Transaction. The Option Buyer may only exercise the Option on the Exercise Date, otherwise the Option will lapse. US Gas Financial Call Option A financial Option Transaction with Enron North America Corp., under which the Seller receives the Premium and the Buyer receives the Cash Settlement Amount. Each calendar month during the Term of the Transaction will be a Determination Period, provided that if the Term of the Transaction is less than one calendar month the Determination Period shall be the Term of the Transaction. The Notional Quantity per Determination Period shall be calculated from the volume submitted by Counterparty on the Website in accordance with the unit of measure. The Premium shall equal the product of (i) the price submitted by Counterparty via the Website, multiplied by (ii) the Notional Quantity per Determination Period, multiplied by (iii) the number of Determination Periods during the Term of the Transaction. The Payment Date for the Premium shall be 2 business days after the Trade Date of the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be 5 business days after the Cash Settlement Amount is determinable. The Cash Settlement Amount shall be the greater of (i) zero, or (ii) the product of (a) the Notional Quantity per Determination Period, multiplied by (b) the Index minus the Strike Price. The Option style and type shall be a European Call ("EC"). Automatic Exercise is Applicable. The Strike Price for the Transaction shall be as set forth on the Website. The term of the Transaction shall be from the Effective Date of 01 Aug 2001 to the Termination Date of 31 Aug 2001. The Exercise Period(s) shall be the penultimate Trading Day of the NYMEX Henry Hub Natural Gas Futures Contract for the applicable Determination Period. The Index for each Exercise Period shall be the settlement price for the penultimate Trading Day of the NYMEX Henry Hub Natural Gas Futures Contract for the applicable Determination Period. The price is quoted in US Dollars per unit of volume, which will be the Contractual Currency. The unit of measure against which the volume is shown shall be 10,000 MMBtu's per month. Kevin (713) 853-9555
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