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Non-Tech : WELLS FARGO -- Ignore unavailable to you. Want to Upgrade?

To: Mark Halfon who wrote (1044)	12/19/1997 8:25:00 PM
From: Jaime H. Ayalde	Read Replies (1) \| Respond to of 1281

83 million credit from the sale of the stock, 47 debit on the options! Offer the shares & as soon as they get taken at the ask, you buy the options at the offer. Both on the ASK. The MM now has 36 million in cash to protect another position, (or cover a Margin call on his long Topix or Kospi <G>) The point is that he does not want to loose his LONG WFC. He hedges the sale. The reasons are beyond my understanding, but that is what makes a market. Taking an extreme example, the most he could loose owning the stock is 83MM but now his Risk is down to 47MM. The market is all about management of RISK. 3 month bills UP 14 basis point in yield while long bonds dropped in yield today. Banks cost of money is going up while what the receive is going down. Great for WFC!@#?