In the aftermath of the ENRON Corporation failure, we acknowledge that many investors experienced a financial loss when their ENRON equity holdings lost market value. Our research centers upon the loss of that market value, and when the capital market first signaled the positive potential of that loss. An examination of ENRON option open interest from January 1, 2000 through December 31, 2001 reveals that such information was available, observable, and inferential a year earlier.

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