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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: John Walliker who wrote (110864)9/22/2000 4:09:01 PM
From: Sam Citron  Respond to of 186894
 
John,

RE: Black-Scholes

It is true that warrants have existed for a very long time, although they have primarily been used by very marginal companies rather than established growth companies such as Intel. Regardless, Black-Scholes doesn't take into account any expected growth over time, so shorting out-of-the-money LEAP puts of established growth stocks tends to be profitable most of the time.

To see how the formula works, just click on a component of the formula at pbs.org

Sam