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Technology Stocks : Intel Corporation (INTC)
INTC 38.16+2.5%Nov 7 9:30 AM EST

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To: GVTucker who wrote (179959)12/20/2004 3:45:40 PM
From: Lizzie Tudor  Read Replies (1) of 186894
 
I have yet to see anyone offer any evidence that Black-Scholes isn't highly accurate, and certainly greater than 50%. It is a red herring thrown up by expensing opponents without any logic or understanding of Black-Scholes.

Frontline had a whole piece on how BS caused the LCTM debacle which threatened to take down the mkts years ago.

I agree with you that options expensing foes are throwing up whatever red herrings they can find to support their bias, but to imply there isn't any reason to question BS is a bit naive don't you think?

I remember the end of that frontline piece, they had these analysts making statements that were essentially (paraphrasing)..."if you have a financial model and it fails to anticipate extreme events, ok, the model may or may not fail in totality.... but if you have a financial model DESIGNED to interpret extreme events and it fails, you have a failed financial model".

It was a good show, you might want to rent it
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