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To: Joseph G. who wrote (14631)	9/5/1998 9:58:00 PM
From: Jon Koplik	Read Replies (2) \| Respond to of 152472

Here goes my first attempt at a "flame" ... (my wife advised not to spend the time on it). Myron Scholes (who I know personally because I took his advanced level course when I was at business school) is an expert on options pricing theory. John Meriwether (who I also have met, and talked with (briefly) when I worked at Salomon Brothers a long time ago) lost money (this year) (his limited partners are still apparently up about 20% annually, after all fees, even including this year's debacle) by making huge bets on (what I call, anyway) credit spreads ... meaning the yield spread between say a AAA U.S. Treasury instrument, and something other than a U.S. Treasury instrument. The fact that Myron Scholes had some relationship with John Meriwether's firm has nothing to do with the validity of the Black Scholes Option Pricing Model, especially since I have seen zero mention of any options being involved in discussions of Long Term Capital Management's travails. I am also still pleased to have personally known someone who went on to be awarded a Nobel Prize. Jon.