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To: UnBelievable who wrote (52541)	12/30/2000 5:43:41 PM
From: robnhood	Respond to of 436258

That sounds considerably better then 37.5's.... The drop off in JPM was caused by a Market on Close sell order for over 1 million shares. There were dozens and dozens of very large MOC orders on Friday. Most of them were sells.

To: UnBelievable who wrote (52541)	12/30/2000 5:44:28 PM
From: robnhood	Respond to of 436258

That sounds considerably better then 37.5's.... Thank you I'm not sure that the MOC order had anything to do with the arbitrage. The were dozens and dozens of very large MOC orders on Friday, mostly on the sell side. As a matter of fact JPM's imbalance was initially reported as a buy, which stopped a decline in it's tracks for a couple of minutes, but soon the error was corrected and down it went. It would appear that the specialist or some have earlier info then others regarding large imbalances as this was definitely sliding before the imbalances were posted.

To: UnBelievable who wrote (52541)	12/30/2000 9:12:38 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

CMB-JPM options re-revisited: From the CBOE site: cboe.com What will happen is the existing JPM strikes will continue. The underlying ("new" JPM shares) will be multiplied by 3.7. Therefore current JPM 150 calls would be priced using an underlying basis as $44.75 x 3.7=$165.58 or 15.58 in the money. Essentially, no additional options will be issued, but the premiums will be determined based on the share conversion.