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Why Black Scholes Doesn’t Work
 Why Black Scholes Doesn’t Work
Overvaluations Eliminated
What FAS 157 Means to You
Defining Fair Value Measurements
D O T Y S C O T T E N T E R P R I S E S , I N C .
Overvaluations Using Black Scholes
Over the past 20 years, corporate America has become accustomed to
measuring the value of a stock option using the Black Scholes Merton (“BSM “) model.
What FAS 157 Means to You Defining Fair Value Measurements
FAS 157 is the fair value rule put into effect by the Financial Accounting Standards Board (FASB). It requires that certain assets and liabilities held by companies be marked to market. In other words, you have to value the assets at the price you could get for them if you sold them right now on the open market.
To get the full story you can download it here,
or you can copy and paste the link below,
http://www.alphatrade.com/docs/black-scholes-doesnt-work.pdf
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