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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Barbara Barry who wrote (8912)	11/21/1997 5:41:00 PM
From: John Hunt	Read Replies (1) \| Respond to of 18056

Barbara, I have to study the VIX index myself this weekend. Here is a link that explains it. cboe.com John

To: Barbara Barry who wrote (8912)	11/21/1997 5:50:00 PM
From: Defrocked	Read Replies (1) \| Respond to of 18056

Barbara, the VIX is based on the implied volatilities of the at-the-money OEX options on the CBOE. As you stated, the VIX is a direct result of supply and demand for options as represented by a standard Black-Scholes options pricing model. Most finance texts now have a section on options pricing and the B-S model that may help you. BTW, don't get hung-up on tonight's market imbalances. IMHO the following is a good rationale for this activity. :^) techstocks.com As to conspiracy theories, if you read some of the recent chatter on the CPQ Thread, you'll find they believe someone is now conspiring to keep CPQ down! Guess your not paranoid if everyone's really out to get you.<g>