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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON?

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To: jmt who wrote (4170)10/14/1998 3:15:00 PM
From: John S. Baker  Read Replies (1) of 6931
 
My knowledge ... very limited, indeed ... of Black-Scholes is based on discussions here in the San Diego area with officers, Directors and investors in small, hi-tech, startup companies ... which, as you point out, are not good candidates to have publicly-traded options.

And it still leaves a great deal of flexibility in determining the "volatility" component of Black-Scholes valuation.

JSb.

"Thanks for the information. I m a bit familiar with the accounting treatment of stock options used in calculating EPS under US GAAP. The process was simplified by FASB last year, but I have never seen any reference to Black-Scholes. You must be reffering to companies who issue options which are not registered or traded on any exchange. That would be the only reason to use Black-Scholes in lieu of market value."
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