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To: RetiredNow who wrote (64049)	5/15/2003 9:57:31 AM
From: GVTucker	Read Replies (2) \| Respond to of 77400

mindmeld, RE: Not true. Black Scholes overestimates in a market crash. During a market bubble it underestimates. And then during the "normal" times when the market is not experiencing 2+ standard deviation events, Black Scholes is darned accurate. Black Scholes does not estimate future values. It estimates current value. It is not a predictive tool. It does not overestimate the value of an option in a market crash any more than the market overestimates the value of a stock in a market crash.

To: RetiredNow who wrote (64049)	5/15/2003 9:59:30 AM
From: rkral	Read Replies (1) \| Respond to of 77400

OT ... mindmeld, re ".. guaranteed payout, but they only get it as they vest in it .." I call that cash-bonus plan, which is effectively a salary increase. What do you call it? Puzzled, Ron