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Strategies & Market Trends : Expirationless Options (XPOs)- The Next Big Thing -- Ignore unavailable to you. Want to Upgrade?

To: Tech Master who wrote (13)	7/8/2005 11:32:34 AM
From: Moominoid	Read Replies (2) \| Respond to of 60

It sounds actually a bit like convertible stock.

To: Tech Master who wrote (13)	7/8/2005 11:40:17 AM
From: Win-Lose-Draw	Read Replies (2) \| Respond to of 60

Black-Scholes won't work.... Black-Scholes is neither here nor there, perpetuals have been around for a long time in other markets and they don't need Black-Scholes for pricing becuase they're simply not that complicated. They are, however, risky - you'd better have rock solid clearing of counterparties - which means astronomical margin requirements for anybody selling them - which means retail will be buyer-only. Not to put too fine a point on it - any instrument Wall Street invents that essentially limits the selling to them and the buying to retail is an instrument Retail should run from as fast as they can.