"Slap, slap, slap—"

Wall Street, Manhattan.

At three o'clock in the morning EST, the sound of leather shoes and marble floors colliding sounded in the corridor on the top floor of the Morgan Building.

The lights are still on in the office.

Anthony Gard stopped at the door of the president's office with excited steps.

"Slap, slap, slap—"

Now, after four years of waiting, it has finally come time to receive the victory.

For four years, one by one, his peers collapsed or were swallowed up because of market risks, and Anthony Guardian's heart was so difficult.

Losses are tormenting.

In the mid-eighties of the twentieth century, the giant of Wall Street and the empire of the financial world, no one could have imagined that Salomon Brothers would sink in the neon sand and, worse, before dawn.

Because of the wrong risk prediction, Salomon Brothers sold more stock index call options than the company could bear, and the loss was as high as $10 billion, and it had to be acquired by the Travelers Group.

Anthony Guardian, Morgan Stanley executives, Salomon Brothers, and many of their peers did not expect that the neon horror had gone beyond normal economic theory. After a torturous wait, Salomon Brothers was unfortunately on the verge of bankruptcy in 1990.

As it turned out, it was a very stupid investment.

The reasons are not the same, in the major insurance companies, this is a steady profit and no loss, and for the major funds and trust companies, this is a good financial product hedging tool, if the stock market rises, the stock positions held by trust institutions and funds can bring income, if the stock falls, the stock put option bought downward, you can get the profits of the major foreign investment banks.

And then...... Neon's major insurance companies bought stock index options launched by Morgan and Salomon Company, and Neon's major funds and trust companies also bought huge stock index call options.

Such a stupid deal, it is natural to buy.

The stock market rises, give a hundred, the stock market falls, and loses a piece.

From the perspective of Neon's major insurance companies, there is no more stupid investment than selling stock index put options.

In the words of the neon former prime minister, Americans are an inferior people, stupid to the extreme.

As a result, it was naturally a big seller.

Even in order to increase the credibility of this stock index call option, the major investment banks have gone around the hands of the King of Denmark to ensure its gold content and credibility.

This is an intoxicating neon dream, in the pursuit of the whole neon are caught in the 100,000-point mark, Morgan Stanley and Salomon Brothers and a number of other investment banks entered Neon to find Neon's major local insurance companies, and peddled their new products, stock index call options.

Because there is a belief in Neon, almost religiously persistent, it is impossible for the stock market to fall, and in the 1987 crash, Neon can hold up the global financial market, and nothing can stop the Neon stock price from rising to the 100,000 mark. They feel that there is something very special in their market, in the whole nation, that is capable of making neon defy all the laws that exist all over the world.

Maybe it's stupid indeed.

Isn't it stupid?

Assuming that the premium for a call option is one dollar, then theoretically the seller's maximum profit is one dollar, while the buyer's maximum profit is theoretically unlimited.

Yes, it looks like a stupid investment.

Theoretically, the buyer's profit is unlimited, and when the market moves in the direction of the buyer's subscription, unlimited profits can be obtained, while the seller's profit is limited, and the maximum benefit is to obtain the premium paid when the buyer's subscription direction is wrong.

The purchaser of an option pays the seller of the option a premium to obtain the option to buy or sell a stock index contract at or before a certain price level, i.e., the level of a stock index.

The so-called stock index option is a derivative financial product based on the standardized contract of the stock index.

His judgment and reasoning have been supported and recognized by most of his peers, and after many investigations and discussions, he has formulated a perfect short selling plan, stock index put options.

Anthony Guardian believes that Neon stock prices are still peaking.

As a result, the yuan once again appreciated sharply, from 420 to 210, and the cumulative appreciation was as much as doubled. This means that the price of neon goods settled in global dollars has doubled. Higher prices will inevitably lead to a decline in sales, but for Neon's local manufacturing industry, profits have not increased as a result. Judging from the data at that time, in the past few years, the neon trade surplus has reversed, and the stock market is also a thousand times PE.

In 1987, due to the rapid depreciation of the US dollar and the instability of the global exchange rate, the finance ministers and central bank governors of the seven countries reached an agreement at the Louvre in Paris to take joint measures to stop the decline of the US dollar at that time and maintain the basic stability of the US dollar exchange rate.

In two years, under the leadership of various countries, the dollar began a depreciation journey, and the yuan appreciated rapidly.

In 1985, the European and American economies were dragged into the abyss by the impact of the Cold War, coupled with the cheap impact of neon goods, the economies of various countries were even worse, in order to curb the crazy aggression of neon, the four countries continued to exert pressure, and the neon cabinet signed a dollar depreciation agreement with the four countries at the Plaza Hotel.

But all this, in 1985 set off a rest.

Because of the abnormal flood of the yuan, the value of the yuan currency has been maintained at a very low level, so the neon stock market will soar all the way.

The logic of the rise of the neon stock market, one of which is very important is based on the form of neon commodity aggression on the world, with low prices, neon cars, refrigerators, air conditioners and even supplies, all over the world, there is no exaggeration to say everything, as long as there are people, there are neon goods.

Anthony Guardian has a good reason.

In November 1988, the neon stock market had tripled in five years, and according to PE calculations, Anthony Guardian, who was head of Morgan Stanley's investment department, believed that the neon stock market was still peaking.

Indeed, Anthony Guardian and many of his colleagues have been waiting for four years for this news from neon

In the dead of night, the sound is very loud in the empty corridor, the sound is very urgent, and the frequency is also very uneven, indicating that the owner of the leather shoes is very unstable and excited. It was time to rest at night, but the owner of the leather shoes was walking in a hurry, indicating that he must have been waiting for news that made him fluctuate, and this news could only come from the other side of the ocean.

Who would have thought that Wall Street, which represents extravagance, money and depravity in the eyes of outsiders, can only be regarded as normal, and it is common to stay up all night or even 72 hours without sleep.

Knocking on the office door, Anthony Gard straightened his collar and stepped inside.

"James, neon news. ”