Re: why are FDG 2008 call options below market price?
Great quote from Charlie Munger at the 2003 BRK AGM:
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 [where he is a board member] we issued stock options with strike prices of $30 and $60, and Black-Scholes valued the $60 ones higher. This is insane.
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