SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer Phud who wrote (178204)5/28/2004 2:26:40 PM
From: GVTucker  Read Replies (1) | Respond to of 186894
 
elmerp, RE: Market forces define the options price, not the BS model. If people are buying then the price goes up. If people are selling then the price goes down. The BS model gives someone a method of determining if the going price constitutes a reasonable opportunity but the bid and ask are defined by what people are willing to buy or sell at.


The people that set the prices, that make the market, all of them use Black Scholes.

Market forces do indeed define the price, but Black Scholes makes the market.



To: Elmer Phud who wrote (178204)5/28/2004 3:15:47 PM
From: rkral  Respond to of 186894
 
OT .. elmerp, re "The BS model gives someone a method of determining if the going price constitutes a reasonable opportunity ..."

Hmmm. Sounds much like the Black-Scholes model gives the fair price, the nominal price, the price expectation. Thanks for making my point for me.

Ron


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News