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To: James F. Hopkins who wrote (259217)9/6/2003 11:06:01 AM
From: mishedlo  Read Replies (1) | Respond to of 436258
 
I suspect this will cause an eventual disaster somewhere.
Image what happens if there are huge bets on the VIX. In order to prevent the VIX from breaking out of its range and paying off, they pin it to some strike (either high or low. Someone will figure out how to take advantage of this either by buying or selling underlying options or shares.

I can easily envision a disaster of some sort over this.

M