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...

Both US and EU accounting rules are vague in referring to the Black-Scholes model or pricing models derived from B-S. They are wrong in treating volatility since the mathematical assumption of constant volatility does non apply. Back-testing proves that low performance is achieved in predicting...