I’ll Take An Option On That Rain-Check!

Thursday, 30 September 1999
By Now&ZYen

Z/Yen has just completed a major study into the market for Over the Counter (OTC) derivatives processing for a major bank. The team comprised Michael Mainelli, Mary O’Callaghan, Alan Leale-Green, Paul Cattermull, Robert Pay and Jacqueline Goldberg. As Mary O’Callaghan’s first assignment (she joined Z/Yen in August), she thought she’d buy a plain vanilla option - simple ice cream can be so refreshing on a hot summer day – but only got a bunch of legal papers jabbering on about interest rates. Undeterred, she thought she’d try a swap, recalling the days when you could get three gobstoppers and a rolled up piece of string for two prize conkers and a couple of cards from crisp packets. Sadly, all she got was a bunch more legal papers, this time jabbering on about currencies. Finally, she got a demand saying it had all gone the wrong way and she’d lost £100M. Seriously, the assignment has been a great success for both client and Z/Yen. Those of you who are interested in this subject are welcome to a copy of the published results.