3 123456700 Exhibit 1 ITO'S DILEMMA Weekly Prices and Returns for Duke Energy, IBM and Microsoft Prices Returns (In) 6 Week No. Date Duke Energy IBM Microsoft Duke Energy IBM Microsoft Close Close Close 9 1 31-Jul-00 33.16 115.47 69.13 7.27% 3.57% -0.81% 10 2 07-Aug-00 33.58 120.34 72.44 1.25% 4.13% 4.68% 11 3 14-Aug-00 34.32 120.15 71.00 2.18% -0.16% -2.00% 12 4 21-Aug-00 34.75 128.69 70.63 1.25% 6.87% -0.53% 13 5 28-Aug-00 36.89 133.30 70.19 5.96% 3.52% -0.62% 14 6 04-Sep-00 39.64 129.19 69.31 7.20% -3.14% -1.25% 15 7 11-Sep-00 40.10 124.70 64.19 1.14% -3.54% -7.68% 16 8 18-Sep-00 37.44 123.58 63.25 -6.86% -0.90% -1.47% 17 9 25-Sep-00 42.32 112.35 60.31 12.25% -9.52% -4.76% 18 10 02-Oct-00 40.37 115.72 55.56 -4.72% 2.95% -8.20% 19 11 09-Oct-00 42.00 108.80 53.75 3.97% -6.17% -3.32% 20 12 16-Oct-00 42.59 94.52 65.19 1.39% -14.07% 19.29% 21 13 23-Oct-00 40.95 93.46 67.69 -3.91% -1.13% 3.76% 22 14 30-Oct-00 41.97 99.88 68.25 2.45% 6.65% 0.83% 23 15 06-Nov-00 43.17 92.89 67.38 2.83% -7.25% -1.29% 24 16 13-Nov-00 43.83 101.82 69.06 1.51% 9.18% 2.47% 25 17 20-Nov-00 42.71 99.82 69.94 -2.58% -1.98% 1.26% 26 18 27-Nov-00 43.33 95.52 56.63 1.44% -4.41% -21.12% 27 19 04-Dec-00 42.59 96.89 54.44 -1.73% 1.43% -3.94% 28 20 11-Dec-00 41.06 87.71 49.19 -3.64% -9.95% -10.14% 29 30 31 32 33 34 35 36 37 38 5222222223 21 18-Dec-00 41.96 88.90 46.44 2.17% 1.34% -5.75% 25-Dec-00 36.25 93.89 49.13 -14.63% 5.47% 5.63% 01-Jan-01 41.10 84.72 43.38 12.54% -10.29% -12.45% 24 08-Jan-01 34.83 93.71 53.50 -16.55% 10.09% 20.98% 15-Jan-01 36.16 111.12 61.00 3.76% 17.05% 13.12% 26 22-Jan-01 38.24 114.06 64.00 5.59% 2.61% 4.80% 27 29-Jan-01 37.33 110.14 60.81 -2.42% -3.49% -5.11% 28 05-Feb-01 41.02 112.00 59.13 9.44% 1.67% -2.81% 29 12-Feb-01 41.16 115.00 57.31 0.34% 2.64% -3.11% 30 19-Feb-01 42.27 108.90 55.19 2.66% -5.45% -3.78% 39 40 41 Weekly Sigma of Returns Annualized standard deviation of returns 6.34% 6.69% 8.26% 45.75% 48.24% 59.56% 15 A B C D E F G Exhibit 2 H I J ITO'S DILEMMA Option Premium and Market Data for February 20, 2001 Call Premiums Put Premiums Mar Apr July Mar Apr July Duke Energy 3 42.27 42.27 42.5 2.70 40 4.30 5.30 0.75 1.30 2.25 3.90 4.80 2.40 } 42.27 45 1.25 2.40 3.30 0 IBM 12 1 108.90 100 12.00 14.10 18.70 2.20 4.30 7.00 2 108.90 110 4.40 8.10 11.40 5.30 8.10 10.50 3 108.90 120 1.10 3.60 7.50 12.20 13.90 15.60 4 Microsoft LO 5 55.19 50 6.50 8.13 10.00 1.19 2.50 4.00 6 55.19 55 3.00 4.50 6.88 2.69 4.13 6.00 7 55.19 60 0.94 2.38 4.50 5.38 6.75 8.13 8 9 T-bill rates 4.92% 4.85% 4.91% 4.92% 4.85% 4.91% 0 Expiration date 17-Mar 1 Days to expiration 25 21-Apr 21-Jul 60 151 17-Mar 21-Apr 21-Jul 25 60 151 2