EFTA02465159

From: jeffrey E. <jeevacation@gmail.com> Sent: Monday, April 25, 2016 2:12 PM To: Joichi Ito Subject: Re: $1M rain contract more complicated, value for book purpose= value to a buyer. value to a buyer if cloudy weather da= before. etc On Mon, Apr 25, 2016 at 10:09 AM, wrote: Is the last sentence correct? When you take, for instance= a contract that pays out $1 million if it rains tomorrow, and put it into=your accounts, you will be required to guess the chance of rain-ma=be 50%— and value that asset at something like $500,000. The contr=ct will actually never pay out $500,000; it will either be worth zero or $= million in the end. But if you were forced to trade it today, you =99d probably sell it for something close to $500,000; so for tax and manag=ment purposes, you "value" the contract at 5500,000. On th= other hand, if you unable to sell it because there were no buyers, it mig=t actually be valued at zero today by regulators, but then suddenly valued=at $1 million tomorrow if it rains. =/div> please note =he information contained in this communication is confidential, may be =ttorney-client privileged, may constitute inside information, and is in=ended only for the use of the addressee. It is the property of JEEUnauthorized use, disclosure or copying of this communication or any p=rt thereof is strictly prohibited and may be unlawful. If you have rece=ved this communication in error, please notify us immediately by ret=rn e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication an= all copies thereof, including all attachments. copyright -all rights r=served EFTA_R1_01572901 EFTA02465159