Changing Black-Scholes Software

I'm quite familiar with the Black-Scholes formula but I've never heard of software by that specific name. Can you elaborate?

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the volatility assumption for the options was 0. I .

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So did I.

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Its funnier because the next year (same auditor), the CY vol assumption is 60 and the PY assumption is all of a sudden 50. Although I also found a discrepancy on the fricking cash balance from one audit year to another. I have no idea how someone signed off on these, this is a rather highly leveraged, capital intensive, $500MM/revs company. Definitely a as well.

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Real Talk:

I once had a company submit internals that had an entry on the balance sheet that was labeled "plug to make balance".








The kicker is, the statements still didn't balance. They had somehow forgot to add one of the subtotals into the total. After 6 hours of trying to find my mistake, I wanted to bludgeon their accountant to death with their financials.

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The kicker is, the statements still didn't balance. They had somehow forgot to add one of the subtotals into the total. After 6 hours of trying to find my mistake, I wanted to bludgeon their accountant to death with their financials.

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If the balance of the plug figure is relatively immaterial IMO that's not worth getting worked up over. It would make me extremely weary at the overall validity of the internals and their preparer(s)' competency, but that's forgivable for some of your customers. If it's a small firm it's not always efficient for a mom and pop bookkeeper to spend all day fixing that on interim/non-audited/non-compiled-by-CPA-firm internals. Materiality is the key.

I do hate internals in general. In my current capacity I take a lot of internals and tweak them to your liking so I know where you're coming from.

But the plug not balancing is inexcusable.

Agreed on all parts and we deal with internals regularly, especially when we have to cut up an LTM period. Recently we were working on one and I was telling the MD how I was pretty positive they were worthless because the file said (12-31-11_before_accountant_adj) and how much we used to change stuff when people sent us their internals since they try to expense everything for tax purposes, put interest payments towards principal paydown, etc. What's weird to me is that its basically impossible to have it not balance in any accounting software, certainly not quickbooks or some of those other atrocious accounting programs (I can't remember the name of the other one we used to use but it was fricking awful, although it was for F/S prep, not internal use).

eta: and as you can tell from my posting today I'm not doing shite. CapIQ plugin is acting a fool and CapIQ tech support is gone. Me = not caring at the moment and procrastinating on everything else.

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I have no idea how someone signed off on these, this is a rather highly leveraged, capital intensive, $500MM/revs company.

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And this, ladies and gentlemen, is Exhibit A in why you should quit trying to pick stocks.

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I once had a company submit internals that had an entry on the balance sheet that was labeled "plug to make balance".

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Didn't one of the financial blogs cover a situation where that comment actually showed up in the published financials? Some company in Australia, I believe.

I still don't understand what "software" you are talking about. Black-Scholes is an option pricing formula, not software.

Our equity software has a module for it as well as some other functions but my only reason for even updating it is to get all these damn calculations out of it...so I call it the BScholes Software...I'm dependent on it as it's my first time to be on the other side and actually have to produce it versus just "review" it.

So in conclusion Kfizz I'd love a template so I can just update an excel file!

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THANKS!

Sure! If it's not to much trouble. I wish I had something to trade.