> ...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.
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