The wife of the terrorist whom Arnold saves is behind everything. The bomb is hidden in the dinosaur the son carries around.
Continuity mistake: During the film's climax, in which the Wolf's wife Serena is on the run, CIA agent Peter Brandt tries to ambush her in an elevator. As he runs up to the elevator, we get a wide shot of him, the people waiting for the elevator, and the up/down indicator lights of the elevator. The down indicator is lit. (The shot pans down from the indicator lights as he runs up.) Cut to Elias briefly, then back to the elevator indicators. This time, neither light is on.
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