Black-Scholes works for short-term options, but if it's a long-term option and you think you know something [about the underlying asset], it's insane to use Black-Scholes.
![Black-Scholes works for short-term options, but if it's a long-term option and you think you know something [about the underlying asset], it's insane to use Black-Scholes.](http://cdn.quoteddaily.com/images/charlie-munger/black-scholes-works-for-short-term-options-but-if-its-a-long-term-option-and-you-think-you-know-something.jpg)
Black-Scholes works for short-term options, but if it's a long-term option and you think you know something [about the underlying asset], it's insane to use Black-Scholes.