Gerhard Schroeder ()
International Finance from University Library of Munich, Germany
Critics regarding the Black and Scholes model aren't new. The model was about of being labelled 'historic'. It is new now that the model has become an auto-nomous, unreflected item in international accounting standards and law allowing "creative" accounting. There is no economial relation between the future value of an underlying and it's current volatility. Predictions - pricing of derivatives means predicting - remain uncertain. Findings are based on empirical, experimental techniques using fictituous derivatives, others.
Keywords: Black Scholes; FASB; IAS; IFRS; Accounting; fair value; option pricing; stochastic pricing; derivatives (search for similar items in EconPapers)
JEL-codes: F3 F4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fmk
Date: 2005-10-16, Revised 2006-01-30
Note: Type of Document - pdf; pages: 27
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpif:0510019
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