MORGAN BANK PLANS WARRANTS FOR GOLD AT 425 DLRS

  Morgan Guaranty Trust Co of New York
  plans an issue of 12,000 warrants for gold bullion at 425 dlrs
  an ounce, lead manager Morgan Guaranty (Switzerland) AG said.
      Each warrant, priced at 955 Swiss francs, entitled holders
  to acquire five-ounce bars of .999 gold in the period from
  April 30, 1987, to July 31, 1991, exercisable on Wednesdays.
      The warrants represented unsecured, unsubordinated
  liabilities of the borrower. Payment was due April 16, and a
  quotation on the Luxembourg bourse was planned.
      The warrants, when exercised, would be repaid in current
  dollars based on the value of gold on the exercise date.
      The conditions represent a premium of about 145 dlrs an
  ounce to the current gold price.
      A Morgan (Switzerland) official said that on the basis of
  the maturity of four years and three months, the pricing
  involved an implicit volatility of gold of 24.5 pct before the
  warrants were in the money, compared with implicit volatility
  of 30 pct for the Indosuez gold warrants and 26 pct for the
  Citibank gold warrants recent issued with maturities of 18 and
  24 months.
  

