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Politics : Ask Michael Burke

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To: Raven who wrote (626)8/21/1996 6:20:00 PM
From: Knighty Tin   of 132070
 
Alice, All the folks on the floor of the options exchanges carry around little computers/calculators with The Black-Sholes Model plugged in. But then, very few of them last more than a year before they bust out, so I don't think that is so great. The key is the numbers plugged into the model, and if you have that right, the model is kind of irrelevant. I think the numbers people are accidents waiting to happen. That doesn't mean you shouldn't understand the numbers. Just don't rely on them very heavily. BTW, I didn't mean to trap you on anything. MB
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