Re: NEW Option Product Types

Please mirror what Tom is doing...

Lisa Lees
01/09/2001 02:52 PM

To: Tana Jones/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT
cc: Tom Moran/HOU/ECT@ECT
Subject: NEW Option Product Types

Tana/Karen:

The product long descriptions below will fall under the new product types US
Gas Financial Option Call and US Gas Financial Option Put. Tom Moran has
approved copying the profiles for the new product types from the following:

US Gas Financial Swap

Please respond no later than 10 a.m. on Wednesday, December 10.

Thank you.
---------------------- Forwarded by Lisa Lees/HOU/ECT on 01/09/2001 11:02 AM
---------------------------

Enron North America Corp.

From: Kevin Meredith @ ENRON 01/04/2001 11:26 AM

To: Tom Moran/HOU/ECT@ECT, Rudi Zipter/HOU/ECT@ECT, Jeff
Blumenthal/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Stephen H Douglas/HOU/ECT@ECT
cc: Lisa Lees/HOU/ECT@ECT, Stephanie Sever/HOU/ECT@ECT, Melba
Lozano/HOU/ECT@ECT, Jason Althaus/Corp/Enron@Enron, Robert B
Cass/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT
Subject: NEW ENRONONLINE PRODUCT - PLEASE APPROVE

Your review and approval of the following two product type in the EOL
Datamanager is needed (for directions on approval , please see steps for
approval at the bottom of this e-mail).

US Gas Fin Opt NYMEX EC4 Aug-Sep00 USD/MM-L

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction. The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the website. The
Premium shall equal the product of (i) the price submitted by Counterparty
via the website, multiplied by (ii) the Notional Quantity per Determination
Period, multiplied by (iii) the number of Determination Periods during the
Term of the Transaction. The Payment Date for the Premium shall be 2 business
days after the Trade Date of the Transaction. The Payment Date(s) for the
Cash Settlement Amount shall be 5 business days after the Cash Settlement
Amount is determinable. The Cash Settlement Amount shall be the greater of
(i) zero, or (ii) the product of (a) the Notional Quantity per Determination
Period, multiplied by (b) the Index minus the Strike Price.
The Option style and type shall be a European Call.
Automatic Exercise is Applicable.
The Strike Price for the Transaction shall be as set forth in the product
short description on the website.
The term of the Transaction shall be from the Effective Date to the
Termination Date. The Effective Date is 01 Aug 2000. The Termination Date is
30 Sep 2000.
The Exercise Period(s) shall be the penultimate Trading Day of the NYMEX
Henry Hub Natural Gas Futures Contract for the applicable Determination
Period. The Index for each Exercise Period shall be the the settlement
price for the NYMEX Henry Hub Natural Gas Futures Contract for the applicable
Determination Period.
The price is quoted in US Dollars per MMBtu (one million British Thermal
Units), which will be the Contractual Currency.
The unit of measure against which the volume is shown shall be 10,000
MMBtu's. Each option represents a standard quantity of 1 million BTUs
(British thermal units) per day.

US Gas Fin Opt NYMEX EP4 Aug-Sep00 USD/MM-L

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction. The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the website. The
Premium shall equal the product of (i) the price submitted by Counterparty
via the website, multiplied by (ii) the Notional Quantity per Determination
Period, multiplied by (iii) the number of Determination Periods during the
Term of the Transaction. The Payment Date for the Premium shall be 2 business
days after the Trade Date of the Transaction. The Payment Date(s) for the
Cash Settlement Amount shall be 5 business days after the Cash Settlement
Amount is determinable. The Cash Settlement Amount shall be the greater of
(i) zero, or (ii) the product of (a) the Notional Quantity per Determination
Period, multiplied by (b) the Strike Price minus the Index.
The Option style and type shall be a European Put..
Automatic Exercise is Applicable.
The Strike Price for the Transaction shall be as set forth in the product
short description on the website.
The term of the Transaction shall be from the Effective Date to the
Termination Date. The Effective Date is 01 Aug 2000. The Termination Date is
30 Sep 2000.
The Exercise Period(s) shall be the penultimate Trading Day of the NYMEX
Henry Hub Natural Gas Futures Contract for the applicable Determination
Period. The Index for each Exercise Period shall be the settlement price for
the penultimate Trading Day of the NYMEX Henry Hub Natural Gas Futures
Contract for the applicable Determination Period.
The price is quoted in US Dollars per MMBtu (one million British Thermal
Units), which will be the Contractual Currency.
The unit of measure against which the volume is shown shall be 10,000
MMBtu's. Each option represents a standard quantity of 1 million of BTUs
(British thermal units) per day.

==============================================================================
=====
STEPS FOR APPROVAL:

click the START button
select PROGRAMS
select TEST APPLICATIONS
select ENRONONLINE CLUSTER(PROD)
PROCEED WITH USUAL LOGIN/PASSWORD
click the Enron Online Production Cluster "START" button
select EnronOnLine (this is the EOL Datamanager)
PROCEED WITH EOL LOGIN/PASSWORD
click on the "+" for EnronOnLine
click on the "+" for Product Types
click on the "+" for "Awaiting Approval" (OR "Partially Approved")
select the product requiring review as stated in e-mail above
Right "mouse" click on "properties" to view product set-up
TO APPROVE: Right mouse click on "Approved"

Thanks - Rob Cass - Melba Lozano - Kevin Meredith
x35491 x58986 x39555