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To: willcousa who wrote (179987)	12/22/2004 2:59:26 PM
From: Gordon Hodgson	Respond to of 186894

Will, Re: "Lizzie, I hope as you read the Nova excerpt that it was clear to you that it does not say that B/S was used by LTCM in its trading and hedging." Will, I suggest you get a copy of Nova's "Trillion Dollar Bet". It's a great tape if you'd like to see and hear about the history of options and the development of the Black-Scholes options formula. You can watch Scholes and Merton talk about about the development and use of the Black-Scholes formula...see them receive the Nobel Peace Prize. Then see how John Meriwether and 13 other people started Long Term Capital Management and how they talked Merton and Scholes into joining their team. If it hadn't been for the B/S formula and the idea of risk free gambling through hedging, there never would have been that multi-trillion dollar industry at that time in history. Nova did an excellent job and it's a fascinating story.

To: willcousa who wrote (179987)	12/22/2004 5:15:48 PM
From: Saturn V	Read Replies (3) \| Respond to of 186894

Ref it was clear to you that it does not say that B/S was used by LTCM in its trading and hedging I disagree! Here is quote from the middle of the Nova excerpt pbs.org "NARRATOR: Within months they had raised three billion dollars and were ready to start investing across the globe. ..they devised one of the most ambitious investment strategies in history. Its success depended on absolute secrecy. Not even their investors were allowed to know what they were doing. Analyzing historical data, they used probability to bet that key prices would move roughly as they had in the past. To protect themselves against unwanted risk, they relied on an insight of the Black-Scholes formula - dynamic hedging. In effect, offsetting risk by taking bets in the opposite direction. Supremely confident, LTCM placed vast sums of money on the markets. MYRON SCHOLES: The broad strategy of LTCM was to figure out how to hedge out the risks of your position such that you can do a lot of it much more than you can do if you didn't hedge out the risks " It is very clear that the Black-Scholes model was indeed being used by LCTM, and the developers of the model Scholes and Merton were the ones implementing the strategy.

To: willcousa who wrote (179987)	12/22/2004 7:12:24 PM
From: Amy J	Read Replies (4) \| Respond to of 186894

Study: Mobile phone radiation harms DNA in lab cnn.com After being exposed to electromagnetic fields that are typical for mobile phones, the cells showed a significant increase in single and double-strand DNA breaks. The damage could not always be repaired by the cell. DNA carries the genetic material of an organism and its different cells. "There was remaining damage for future generation of cells," said project leader Franz Adlkofer. This means the change had procreated. Mutated cells are seen as a possible cause of cancer. The radiation used in the study was at levels between a Specific Absorption Rate, or SAR, of between 0.3 and 2 watts per kilogram. Most phones emit radio signals at SAR levels of between 0.5 and 1 W/kg. Adlkofer advised against the use of a mobile phone when an alternative fixed line phone was available, and recommended the use of a headset connected to a cell phone whenever possible. ...a German company called G-Hanz introduced a new type of mobile phone which it claimed had no harmful radiation, as a result of shorter bursts of the radio signal.