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To: Lee who wrote (26559)	5/26/1999 1:14:00 PM
From: Daflye	Respond to of 50167

Yep, what I meant was that a 1 point move in IBM affects the DOW the same way a 1 point move in CAT or KO, or etc... does. Roughly 4.7 (or was it 4.4?) DOW points for every 1 IBM, CAT, KO. The DOW is not cap weighted. Cheers, D

To: Lee who wrote (26559)	5/26/1999 1:16:00 PM
From: broken_cookie	Read Replies (1) \| Respond to of 50167

The DOW divisor was recently re-calculated and reported by Joe Kernan on CNBC on May 24th as 0.2298. So it's a multiplier of 4.35. Daflye was pretty close. He (She?) was correct with the Dow being price weighted. It is something to beware of if one buys DJX options. The divisor needs to be recalculated each time a stock splits and the implied volatility of the options takes a big hit. Might be able to write options to take advantage of this but I don't know if they are liquid enough.