Mount Pelée found adrift from the island, unconscious. The event marked the only major volcanic disaster in the history of France and its overseas territories. Mount Pelée is the result of a typical subduction zone. The subduction formed the Lesser Antilles island arc, a curved chain of volcanoes approximately in length, between Puerto Rico and Venezuela, where the Caribbean Plate meets Atlantic oceanic crust belonging to the South American Plate. Other volcanoes in the island arc are also known for their volcanic activity, including Saint Vincent's La Soufrière, Guadeloupe's La Grande Soufriere volcano, Montserrat's Soufrière Hills, and the submarine volcano Kick 'em
Long-Term Capital Management invested in other derivatives such as equity options. Under prevailing US tax laws, there was a different treatment of long-term capital gains, which were taxed at 20.0 percent, and income, which was taxed at 39.6 percent. The earnings for partners in a hedge fund was taxed at the higher rate applying to income, and LTCM applied its financial engineering expertise to legally transform income into capital gains. It did so by engaging in a transaction with UBS (Union Bank of Switzerland) that would defer foreign interest income for seven years, thereby being able to earn the more favourable capital gains