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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: srps who wrote (5063)	1/14/2004 2:14:13 PM
From: mishedlo	Respond to of 110194

I bought 15 calls strike 97.75 today for 16 BPs. That is in euros not US$s. If they do not cut but do not hike either, Euribors will tend towards 97.90 or so (since that is where the front month is now with 2% rates). futuresource.com 97.75 + 16 = 97.91 So I roughly make nothing if nothing happens (assuming I hold to the bitter end) If they cut this year by 1/2 I will make 40-50 BP's easily, especially if the rate curve inverts and people think future CUTs are likely. Dec Futures straight up are at 97.50 Those should make 40 BPs if nothing happens and perhaps 90 BPs if Euroland cuts. I have 3 futures and 15 calls. substiture ED for LEI to see eurodollar quotes M