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To: On the QT who wrote (88689)	1/15/1999 1:38:00 PM
From: BGR	Read Replies (1) \| Respond to of 176387

OtQT, These days the market prices for options follow B-S to a very high degree. This IMHO leads to upderpricing of LEAPS calls for companies with a track record of tremenous growth (like DELL, for example) but that's a different issue. For the short term, however, the prices follow the B-S equation to a very large extent; but there is a plug factor in determining the option premium, the implied volatility. This is supposed to be measured from historical data, but often deviates a lot from the estimates. This means that the market is disagreeing with past estimates of volatility but not with B-S as such. Personally I try to make profits from such disagreements. If you want to do some studies about options I would recommend the McMillan book for pragmatic use and the one by Hull for theory. Both are fun to read IMO. -Apratim. PS: You are most welcome to call me Tim. :-)