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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Susan G who wrote (8977)11/28/2001 5:25:28 PM
From: Steve Lee  Read Replies (3) of 99280
 
I certainly won't discount the possibility that JPM might have troubles with derivatives. But I don't have any evidence that it does.

What if JPM has sold short derivatives on a varied basket off underlyings to cover up and down scenarios in approximately equal measures and also have long holdings of derivatives to cover extreme price swings? Seems to me the worst they could do is pocket lots of time value money and the best they could do is profit nicely from volatility. And we have had a lot of that since these JPM "mess" rumors have been flying about.

Unless someone tells me exactly which derivates of what JPM holds, then I can't give too much credibility to these rumors.
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