End Of The World Puts

Warren Buffett sold put options that would force him to pay $40B if various stock market indices go to zero. When he sold them, he figured that they would expire worthless and he'd keep the premium. However, these indices are now plunging and these options are becoming less out-of-the-money. Since these puts are MtM, as the markets plunge and volatility increases, Berkshire must take balance sheet right downs.