Robert G. Leslie and Marilyn B. Leslie - Page 18

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          commodities.  At trial, petitioner was unable to provide signed             
          copies of these documents and testified that he did not recall              
          signing either of the documents.                                            
               The $35,000 management fee incurred by petitioner on                   
          December 1, 1980 (see above), was for FAX's services.  Short                
          testified that he never investigated FAX because he felt that FAX           
          was just part of Hunter and that the $35,000 fee was just being             
          paid to Hunter.                                                             
               Through Hunter, petitioner established two spreads on                  
          December 1, 1980.  The first was a simple bear spread consisting            
          of a long position of 30 contracts of October 1981 100-ounce gold           
          at a price of $723.80 per ounce and a matching short position of            
          30 contracts of February 1982 gold at $762.  The second position            
          was an imperfect butterfly spread.  The first wing consisted of             
          70 contracts of April 1982 gold bought at $785.10.  The body was            
          145 short June 1982 gold, of which 70 contracts were sold at                
          $804.50 on COMEX and 75 contracts at $803.50 on IMM.  The second            
          wing was comprised of 75 contracts of September 1982 gold bought            
          on IMM at $834.  The slight imperfection in the butterfly                   
          occurred because there were only 2 months between the first wing            
          and the body, whereas there were 3 months between the second wing           
          and the body; and because the June/September part of the spread             
          consisted of 75 contracts, whereas the April/June part consisted            
          of 70 contracts.                                                            

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