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You know, 'cause I happened. But he taught me everything." I can see," Mike said. "I guess that's why you're sticking with the team, huh?" Sort of," she said with a slight crack in her voice. Mike couldn't look over to see if she was welling up, but he figured she might be. "We used to play together, him and me. He taught me everything about how to pitch and stuff. I feel like he'd want me to keep at it, you know?" Makes sense, sweetheart."There was an awkward silence as they listened to Mad Man rant."You want me to quit, don't you?" she said."Of course not!" he shot back, a little too quickly."I'm not dumb, coach Hammer. I know that's why you make me throw all those extra balls and run all of those laps. You wanted all the girls to quit." She said, though it wasn't an angry accusation. "I know I'm not as good as some of the guys," she said. "I just really want to be good enough. If I keep at it I know I can be." I'm sure you can be, Jenny," Mike said. He didn't bother to dispute her. If the price of the stock went down (as the plan called for – as Jeff was hoping it would) the option to buy (call) would be useless: who would want the option to buy something for (for example) $50 when it was selling on the open market for $40? And, of course, the sell option (put) would be worth $10. But remember that each option is for 100 shares, so if the price of the stock fell by $10, that would be worth $10 x 100 = $1000.So consider the result from the bank’s point of view: pay $20 for a call + get $20 for a put + LOSE $1000 because they had to buy the stock for $50 when it was worth only $40 (in our example).What’s the big deal? They lost $1000 on an option. For 100 shares. But they were dealing in millions of shares. For EACH stock. And there were hundreds of different stocks.So, if the bank had only a million shares (only a million shares! Imagine that.) that worked out to be a loss of 10 million dollars. And they didn’t have a million shares. They had several million: 2.
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