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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.42-2.4%Jan 20 3:59 PM EST

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To: RetiredNow who wrote (64049)5/15/2003 12:35:18 PM
From: Lizzie Tudor  Read Replies (1) of 77400
 
Not true. Black Scholes overestimates in a market crash. During a market bubble it underestimates. And then during the "normal" times when the market is not experiencing 2+ standard deviation events, Black Scholes is darned accurate.

I'm sure you mean it is accurate for mature companies. But anyway if this system doesn't work in bubbles or crashes isn't it kindof useless?
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