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From:
allen dick <[log in to unmask]>
Reply To:
allen dick <[log in to unmask]>
Date:
Fri, 9 Feb 2007 11:33:30 -0800
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> ...Another difference is that ice cream makers tend to know, for example 
> what the "Black-Scholes model" for pricing options is, and what it implies 
> for ice cream.

Let me the first to confess my ignorance.  Frankly, I'm struggling to see 
what "the "Black-Scholes model" for pricing options "has to do with pricing 
underlyings, or "what it implies for ice cream"-- or honey for that matter. 
It's an interesting idea, so I'm hoping you'll expand what you were 
suggesting, for me, and for the rest of the class.

>... I've yet to meet any beekeepers or honey co-op marketing types who even 
>knew the names "Black and Scholes", proving that, as a group, we lack basic 
>education, let alone MBAs.

Maybe you've met some, and just didn't ask the right question?  I've met a 
lot of well-educated beekeepers, and also happen to be a beekeeper that has 
been acquainted with the "Black-Scholes model" for a long, long time. I find 
it of some use in trading options, one of my hobbies.

In support of your claim about  lack of basic (financial) education, 
however, I must admit I was floored to discover a while back that the co-op 
I was shipping to had no currency hedges in place for their large forward 
sales contracts (and no clue about such things) and were getting badly 
beaten up by sudden and rapid the rise in the Canadian dollar at that time.

As for MBAs and education, though, even the highest awards and a lofty 
academic position cannot guarantee wise decisions.  Myron Scholes and his 
ideas contributed significantly to designing a financial train-wreck of 
historic proportions, Long-Term Capital Management.  Any beekeeper or honey 
marketer I know has never have been able to make that large or disastrous an 
error.
---

Note to the list: I realise that I've gotten involved in quite a few topics, 
and haven't replied in some cases, or acknowledged some good points made. 
For that, I apologise.  I'm on the road a lot lately, and have been from 
coast to coast and back a few times, and expect to be for a few more weeks, 
so, please note that I'm not ignoring people.  I'm just constantly on  the 
move. 

-- Visit www.honeybeeworld.com/bee-l for rules, FAQ and  other info ---

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