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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: Charles Tutt who wrote (72204)8/20/2002 1:47:31 AM
From: jonkai  Respond to of 74651
 
I don't have as much faith in the use of Black-Scholes in this context as you do, because of the uncertainty of the applicable volatility. The phrase "garbage in, garbage out" comes to mind.

if you should trade options..... the options market as we know it would not be possible without the Black scholes formula....... no one i have ever heard that trades options thinks that options were priced based on garbage volatility values.......