Purvi,

I have not heard any major news on the ENE stock , we are all just watching it drop
most energy company stocks are in decline right now , wal street is bearish with 
energy stocks until california gets settled 

How is the new group ?

Dutch


 -----Original Message-----
From: 	"Purvi Patel" <pnpatel@tecoenergy.com>@ENRON [mailto:IMCEANOTES-+22Purvi+20Patel+22+20+3Cpnpatel+40tecoenergy+2Ecom+3E+40ENRON@ENRON.com] 
Sent:	Thursday, June 07, 2001 1:38 PM
To:	Quigley, Dutch
Subject:	RE: i need your help....

Thanks for the info. I did do the Black Sholes exercise and got a different premium.  I'll have to research it more. Anyways, thanks again for your help.. by the way, what is going on with the stock price? I only have 10 more days to exercise!!!!!!!! aaaggghhhhh

Purvi


>>> <Dutch.Quigley@enron.com> 06/07/01 11:28AM >>>
Purvi,

Glad to see you working on some good stuff : )

you need to pull out a black sholes calculation and input the varialbles
that you were given
and then call a power options trader to ask for a marekt to check the
resonableness of the model
models can be way off on options due to skew and market conditions

good luck

    -----Original Message-----
   From:   "Purvi Patel" <pnpatel@tecoenergy.com>@ENRON
             [mailto:IMCEANOTES-+22Purvi+20Patel+22+20+3Cpnpatel+40tecoenergy+2Ecom+3E+40ENRON@ENRON.com]


   Sent:   Thursday, June 07, 2001 10:21 AM
   To:     Quigley, Dutch
   Subject:  i need your help....

   I have this little project to do and i need a little help from you...
   (since you are an expert in this field!!)

   ok-- i need to figure out what the premium is on an aug on- peak call
   option for power. Now , I know that power is not what you do, but I can
   use some ideas on how to get started.

   Terms

   Strike price  is $200/ MWH
   Forward curve for Aug is $125/MWH
   Aug 2001
   Foward Volatility of 100%
   Valuation Date is June 8, 2001
   Interest Rate is 6%
   On- Peak Call Option for 50 MW

   SO far, I have looked at some forcasts for Aug, and seen which hours the
   market rate is above 200 to come up with a premium value.  I have an
   answer for this problem, but I was just curous as to see where you would
   start. Anything will work. Thanks!!

   Purvi

   P.S-- also, don't be hesitant to tell me that you have no clue--- You'll
   still be my favorite manager!!!