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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (62876)	2/4/2003 5:02:51 PM
From: rkral	Respond to of 77400

OT .. Lizzie, a few clarifications and observations ... re " .. the endless data mining that goes on with these stock options "debates", ... " If someone didn't do a little data mining, many things said would probably be speculation. AFAIK, no one on SI is data mining excessively. It's a mostly boring and thankless effort, believe me. re "Black Scholes doesn't work" Since that's a rather dogmatic statement, you should be able to answer, .. "How is it that Black Scholes doesn't work, precisely?" re "take a sampling of tech companies and apply black scholes* to them for the past 10 years and determine if it increases or decreases visibility to the shareholders." The Black-Scholes option model is only to used to calculate option values. To "increase or decrease visibility to the shareholders" is not its purpose. It's only a mathematical formula, after all. Did you perhaps mean expensing of options hasn't modified visibility? If so, and since only Boeing and Winn-Dixie are expensing options so far, how can anyone assess whether or not expensing options does* modify stock valuations .. as evidence of modified visibility? re "It was only when I discovered that black scholes was trying to estimate the cost of unvested options and apply that to the current books as a real, legitimate expense that I changed my tune." Per accounting statement SFAS 123, unvested options are not, and would not be, expensed. Somebody gave you some wrong info. You slay me .. really. You complain about all the posting about options, and then you respond to a post about options .. which wasn't even addressed to you (#reply-18534120). <gg> This mini-thread might have died, if you hadn't interjected. If you're going to participate on the one hand, then I suggest you don't complain OTOH. And then you posted misleading info about options .. so I had to interject. <g> Ron