From: Joichi Ito -.1 >
To: Jeffrey Epstein <jeevacation@gmail.com>
Subject: SIM rain contract
Date: Mon, 25 Apr 2016 14:09:41 +0000
Is the last sentence correct?
When you take, for instance, a contract that pays out $i million if it rains tomorrow, and put it
into your accounts, you will be required to guess the chance of rain—maybe so%— and value
that asset at something like $5oo,000. The contract will actually never pay out $500,000; it
will either be worth zero or $1 million in the end. But if you were forced to trade it today, you'd
probably sell it for something dose to $5oo,000; so for tax and management purposes, you
"value" the contract at $5oo,000. On the other hand, if you unable to sell it because there were
no buyers, it might actually be valued at zero today by regulators, but then suddenly valued at
$i million tomorrow if it rains.
EFTA00828835