Paul,

Krishna and I are thinking that you may be able to book this type of option 
as a call swaption on power.   If you would like to discuss further, let's 
set up a time when we can call you.

--Stinson


---------------------- Forwarded by Stinson Gibner/HOU/ECT on 04/04/2001 
04:27 PM ---------------------------


Vince J Kaminski
04/02/2001 08:16 AM
To: Paul Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Stinson Gibner/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT, Paul 
Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Raymond 
Yeow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 
Subject: Re: Real Options  

Paul,

We have done a lot of work in this area. I shall call you later
today (Monday my time), Tuesday morning your time with
some recommendations.

Vince

P.S. Shirley, please send a Real Options binder to Paul.

Vince



From: Paul Smith@ENRON_DEVELOPMENT on 03/30/2001 08:42 AM ZE10
To: Vince J Kaminski@ECT
cc: Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Raymond 
Yeow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 
Subject: Real Options

Vince,

The Sydney office is currently evaluating a proposal that involves an option 
to participate in building a wind farm. Should this proceed, we would like to 
mark this option "to market".

Have the Research group completed any work on methods for booking and 
remarking real options? Alternatively, do you have any suggestions as to the 
best way to value, and book, real options fairly?

Regards
Paul Smith