Charlie Munger Quotes:
Ocupation: Business person
Life: b. January 1, 1924
Birthday: January 1
Black-Scholes is a know-nothing system. If you know nothing about value - only price - then Black-Scholes is a pretty good guess at what a 90-day option might be worth. But the minute you get into longer periods of time, it's crazy to get into Black-Scholes. For example, at Costco we issued stock options with strike prices of $30 and $60, and Black-Scholes valued the $60 ones higher. This is insane.
topic: Crazy, Black, Insane, Stock Options, Costco
