Option Pricing Quotes & Sayings

Looking into it a bit, Jamie found that the model used by Wall Street to price LEAPs, the Black-Scholes option pricing model, made some strange assumptions. — Michael Lewis

The longer-term the option, the sillier the results generated by the Black-Scholes option pricing model, and the greater the opportunity for people who didn't use it. — Michael Lewis

Avoid the Yes or No-and-Go scenario.Give more than one option for others to do business with you. Include packages or pricing options. — Lisa A. Mininni

My principal contribution to the Black-Scholes option-pricing theory was to show that the dynamic trading strategy prescribed by Black and Scholes to offset the risk exposure of an option would provide a perfect hedge in the limit of continuous trading. — Robert C. Merton