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To: BGR who wrote (97398)2/11/1999 4:28:00 PM
From: edamo  Read Replies (1) | Respond to of 176387
 
black-scholes is very theoretical....it requires a major assumption to be made in the area of volatility...assume wrong, the buyer loses as time erodes.....assume wrong on the sell side with or without black-scholes and the worst that could happen is that your issue is called away at a price you know with a profit you have built in...no harm in taking a profit...on the put against cash side you can own a stock you want a price lower than market on the day you sold the put, or if end of the world comes roll it forward until a new world appears....don't get hung up with formulas...keep it simple..