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11/12/05
21:57
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does your pricing allow for the dilution of shares and options
Yes coz its the price is based on the heads and the heads account for dilution dont they
what about volatility if it was measured in a month with no spikes.
The exercis date is nearly 2 yers away, it is silly to consider volatility over 1 month in this situation.
What value would your model come up with then .
Not worth considering
Wouldnt it be a lot lower than the current price therefore showing that the options are way overpriced
Only if you were a numbskull and used the volatility you suggested
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