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Enron Mail |
If they can figure out a way to do it, more power to them - but there are
only just so many characters available in the short description line. Greg Johnston 03/12/2001 02:18 PM To: Mark Taylor/HOU/ECT@ECT cc: Dianne Seib/CAL/ECT@ECT, Lon Draper/CAL/ECT@ECT, Melba Lozano/HOU/ECT@ECT Subject: Re: Option Language Mark, you are right on the second point. I think we are probably okay there. I understand from our option traders that they intend to set the products themselves up on EOL to address the different calculations in the products themselves rather than coming up with different long descriptions for each. Does that make any sense or should we be setting up separate long descriptions for each of the types of options they want to offer? From: Mark Taylor on 03/12/2001 01:28 PM CST To: Greg Johnston/CAL/ECT@ECT cc: Dianne Seib/CAL/ECT@ECT, Lon Draper/CAL/ECT@ECT, Melba Lozano/HOU/ECT@ECT Subject: Re: Option Language Greg: It looks like Melba sent you an example of a put. There is nowhere else on the website to explain the different calculations so they use the identical Long Description except for that one clause to differentiate between puts and calls. So far there have not been any collars, straddles, etc. offered. On the second change, it looked to me like the preceding sentence already covers the treatment of holidays: ...at the end of such day (normally being 4:05 p.m. (MPT)) on EnronOnline (or for Saturdays, Sundays and statutory holidays, at the end of the day on the preceding business day)... which makes the deleted language redundant. Greg Johnston 03/12/2001 11:30 AM To: Melba Lozano/HOU/ECT@ECT cc: Dianne Seib/CAL/ECT@ECT, Lon Draper/CAL/ECT@ECT, Mark Taylor/HOU/ECT@ECT Subject: Re: Option Language Melba, I have reviewed the proposed changes and I do not believe that they should be made. The change to the calculation of the Cash Settlement Amount to specify it is the Strike Price minus the Index doesn't work unless the option is a put. We want this long description to work for all options (puts, calls, collars, etc.) and for each of those the calculation of the Cash Settlement Amount is different. That is the reason that we originally put in the generic language that the Cash Settlement Amount is "the greater of zero or the amount calculated as set forth on the Website", such that the actual calculation mechanism for the Cash Settlement Amount will be set forth in each specific product. Therefore, I would suggest we change it back to the original wording. On the second change, I know that the wording that was removed is important to our traders. If the description is silent on holiday pricing (which will be the case if we make the suggested change), I am not sure as to what the default is. We need to make sure that the default where the pricing for holidays is not specified is exactly the same as the wording removed, otherwise the wording removed needs to be put back in. I am also not clear on why we would remove the wording in the first place and create any uncertainty as to holiday pricing. Thanks Greg To: Greg Johnston/CAL/ECT@ECT cc: Dianne Seib/CAL/ECT@ECT, Lon Draper/CAL/ECT@ECT Subject: Option Language Greg, Attached please find the language for the Option products. I need final approval from you. Changes were suggested by Mark Taylor. Thansk, Melba
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