Several months ago, there was a discussion at length about how one could use the futures and options markets to transfer funds anonymously. This week's edition of Forbes magazine (Jan 30, 95) has the headline, "OIL! GUNS! GREED! Was Chase Manhattan ripped off by arms traffickers?" In the story, Forbes guesses that some suspiciously large losses in the options market could have been a smoke screen for money laundering: Oil traders do big business in unlisted options, providing a further smoke screen. Perkins points to deals in which Harris would buy a put option on a cargo of crude from a friendly counterpart like Bayoil and resell a similar contract in the oil market. If oil prices climbed, the put would expire worthless and Bayoil would pocket the price of the option, while Arochem would break even. If oil prices dropped, and the ultimate buyer exercised the put, Arochem could absorb the loss while conveniently neglecting to exercise its put against Bayoil, Perkins theorizes. (pg 87)