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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: hdl who wrote (85100)	11/16/2000 5:23:04 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

hdl, There are several ways to play it. My favorite is buying call options on the Euro on the Philadelphia Options Exchange. The positive is that you can make a huge amount of profit and the losses are limited to your premium cost. The negatives are that they are not very liquid and the premiums are an outlay of cash for time premium. I solve this by using my 90/10 method of option buying, where in any given year, I buy long options in up to 10% of the 90/10 portfolio and keep the other 90% in money markets. That allows me to reload if I hit a spell that runs against me. Buying currency futures is another way to play, but in this case, the downside and upside are equal. That is a risk/reward tradeoff that does not thrill me. On the positive side, you are not paying a premium and any move in the right direction is a positive. Buying Euro denominated bonds is another alternative. The positives are that they pay a decent interest rate and are generally very high credits. The negatives are that you have to buy through a European bank or be a very large customer at a full service intl. broker. Another negative is that the day you buy will be the last time you ever see a price quote. Buying European closed end funds or Webs is also a play. The positive is that they sell at discounts and you get a lot of bang for your buck. The negative is that factors other than the Euro also have impact on their prices. Hope this helps.