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To: edamo who wrote (97403)2/11/1999 4:35:00 PM
From: BGR  Read Replies (1) | Respond to of 176387
 
edamo,

I do understand the limitations of BS, particularly the risk-neutrality assumption seems particularly suspect to me (but may be I don't understand it well), but still I prefer formulae to SWAGs (though I do make a lot of SWAGs :-)). I am not a trader really and may even be a closet-believer in the EMH. Besides stochastic differential calculus is way too fun to not indulge in, even if the models are too strict.

-BGR.

PS: Every single options house prices bids and asks using B-S though, it may be theoritical but has extensive practical usage.