scholes

You sit around all day and think about the next big equation, or how to model derivatives better than black scholes.

Fischer Black and Myron Scholes weren't sitting in front of their white board thinking about all the people they could rip off.

It is possible to value options using black scholes or other valuation metrics.

In fact, you can't even do black scholes because the variability is enormous but the transaction set is low, so if you even try to plug it into B-S you get ridiculously high numbers.

For every Mandlebrot debunking the events, there were ten Myron Scholes basking in the glory of validating Wall Street's delusions with some mathematical magic.

I'm assuming your calling black-scholes the lamp post and the more generic technique the alley.

And further, you are not in the least addressing the points in this and other articles, the problems with Black-scholes, the Gaussian Copula and so-forth.

Oh, and for goodness sake don't put down on your cv that you've read the first 13 chapters of Hull and know Ito's Lemma and the Black Scholes model.

Programmers are not better than programs if the program it is competing against is a black-scholes estmator, compiler, interpreter, or assembler, and time is an input to the cost function.

The reason that I was told is that people are afraid of using some generic black box and instead prefer something like black-scholes (or whatever) that has an explanation they can understand.

In any case it applies at the instant the valuation is done; typically (for all the ones I've read / paid for) uses black scholes which rarely makes sense for an illiquid startup; and in any case has no relation to what you might get out of your option package, which is ultimately what matters, isn't it.

Things like GDP (or GNP; I can't remember the current term) or Black–Scholes do not have any real evidence of existence and are certainly "mystical".

Cristiano's explosion onto the scene at Manchester United was remarkable but "astonishing" is a bit of a stretch, since they've always given chances to younger players to work their way into the first team and many of them have impressed, including David Beckham (who Cristiano Ronaldo replaced), Paul Scholes, Ryan Giggs, and more recently Adnan Januzaj.

I mean, good grief, a lot of the interest is in the Brownian motion approach to the Dirichelet problem and Black-Scholes, and that was Fisher Black.

As did Kenneth Arrow[0], Merton&Scholes[1] (Fisher Black had already died at that point, and they don't award it posthumously), and Aumann[2].

Not a facetious but serious question, but what theoretical part of Black-Scholes is really important for a options trader's everyday trading?