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JJM111

12/15/14 4:39 PM

#7742 RE: 236T568 #7739

Black Sholes won't work

Also having used the Black Sholes since it inception your assertion that it works in small cap space is a fiction found only in the accounting world after Enron. Good for NYSE and NASDAQ not OTCBQ. Black-Scholes Options Pricing Model or binomial or lattice models, because they can use their stock’s historical price movements and published forecasts to compute inputs for these models, such as stock return volatility. However, the key inputs, such as volatility estimates, that are needed to determine the fair value of an option can be very difficult to ascertain for thinly traded public and private companies.