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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.80-1.9%Dec 12 9:30 AM EST

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To: Lizzie Tudor who wrote (61377)9/19/2002 6:17:38 PM
From: rkral  Read Replies (1) of 77400
 
The options expensing crusade lost a lot of steam by putting forth the black scholes approach too... which couldn't even gain support from a majority of accountants.

Are you sure you're correct there, Lizzie? If the support is so weak, why did the Financial Accounting Standards Board (FASB) publish SFAS 123 in 1995 proposing Black-Sholes as one method to evaluate the option grant expense? (The only other suggested option-pricing model was the binomial model. See paragraph 19 of FAS 123.)

What evidence do you have that the "crusade lost steam by putting forth the Black-Scholes approach"? (Talking of crusades, you seem to be on an option-FUD crusade.)

BTW, Black and Scholes are proper names, and should be capitalized.

Ron
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