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Non-Tech : Derivatives: Darth Vader's Revenge

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To: Henry Volquardsen who wrote (14)9/3/1998 2:44:00 AM
From: Peter Singleton  Read Replies (2) of 2794
 
Henry, thanks a ton for your insight and comments.

Question:

<<Re the last question about what happens to our puts etc. That is
actually a question. I wonder how many people with options positions on
the various futures exchanges have ever checked the credit worthiness of
the exchanges.>>

If the market crashes (bottoming maybe, say, Dow 4500 - 5000, c. 1929 levels for the initial decline) sometime in the next couple of months, what is the risk that put and short positions will be uncollectable? What if a crash were worse? How would you characterize that risk?

Peter
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