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Technology Stocks : Intel Corporation (INTC)
INTC 40.51+0.4%3:59 PM EST

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To: NITT who wrote (177795)5/6/2004 9:57:47 AM
From: GVTucker  Read Replies (1) of 186894
 
NITT, RE: Ron, that argues for disclosure of the detail of the grants, not some value established by a bunch of gamblers.

Therein lies a problem. You see, option pricing with the Black-Scholes formula is not "some value established by a bunch of gamblers", it is a three decade old formula that is tested and verified every day in the free market. It works.

Thirty years ago there were many people who didn't believe that the Black-Scholes formula was valid, that it didn't properly value options. Those people lost a ton of money. There were a select few people that believed in the power of the model, and they made fortunes back when option pricing was not uniformly Black-Scholes.
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