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To: M. Frank Greiffenstein who wrote (20856)	10/8/1998 11:37:00 PM
From: Eric Klein	Respond to of 164684

Thanks for the info. I wonder if it'll be enough to pull their nuts out of the fire? The thing that really scares me about LTC is that (correct me if I'm wrong) it is run by a couple of Nobel prize winning economists (along with 3 others, including a former Fed member). What did they win the Nobel prize for? ans. They invented the formula that is widely used to price derivatives. What did they lose all their money doing? ans. Trading derivatives. Is there a lot of derivative trading going on now? Enough to upset all the US market applecarts? ans. You betcha. What criticism is often made of these derivative pricing formulas? ans. When markets move rapidly the formulas underestimate risk.