American University of the Caribbean of Texas) to help place AUC in their temporary Campus. Classes started again on 17 October 1989 for 3 semesters before returning to Montserrat. The Montserrat campus was rebuilt and AUC reopened it for classes in September 1990. Long thought to be dormant, the Soufrière Hills volcano on Montserrat erupted on 18 July 1995, rendering much of the island uninhabitable, including the entire city of Plymouth. Students and faculty were evacuated, and the campus was buried under volcanic ash. AUC reopened its operations in September 1995. 250 students were sent to a temporary location in Belize and 280 students were
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