Message-ID: <23900564.1075856946664.JavaMail.evans@thyme> Date: Tue, 18 Jan 2000 06:26:00 -0800 (PST) From: vince.kaminski@enron.com To: stinson.gibner@enron.com, zimin.lu@enron.com, grant.masson@enron.com, shirley.crenshaw@enron.com Subject: Modeling in Real Options Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Vince J Kaminski X-To: Stinson Gibner, Zimin Lu, Grant Masson, Shirley Crenshaw X-cc: X-bcc: X-Folder: \Vincent_Kaminski_Jun2001_8\Notes Folders\Sent X-Origin: Kaminski-V X-FileName: vkamins.nsf She will come on Thu at 10:15. Vince ---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 01/18/2000 02:26 PM --------------------------- Jeanne A Klein@ENRON_DEVELOPMENT on 01/12/2000 11:55:49 AM To: Vince J Kaminski@ECT cc: Mingcheng Lian/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Zimin Lu@ECT Subject: Modeling in Real Options Vince, My name is Jeanne Anne Klein and I am a financial modeler working with Mingcheng Lian on a high profile pipeline project in China. Zimin Lu referred us to you regarding questions we have on the Real Option Valuation Approach. We are very enthusiastic about what we have read and heard about this valuation method. We have been doing some preliminary research on the Real Option Valuation approach and believe that integrating this approach into our financial model would bring a significant increase to the value to the project. We have identified some deal aspects we believe would be ideal to valuate as real options. Our goal is to work with the development team to structure the deal to incorporate the Real Option Valuation approach into the model enabling us to arrange the contracts within the deal to optimize the project's value. We would like to arrange a meeting with you at your ealiest convenience to brainstorm on additional deal aspects that can be valued using the real option approach as well as on ways to quantify these aspects using the Real Option valuation Method. Please advise if you will be able to meet with us within the next week or two. Thank you for your kind attention, Jeanne Anne X 6-6547