[WalterBright]

The Black-Sholes equation is an attempt to calculate risk. Of course, risk is difficult to pin down to a number, and different people will assess risk differently.

But that's irrelevant to my point, which was that risk is factored into the price.

[PaulDavisThe1st]

You made a very specific claim that more risk == lower price. That isn't true as a general rule, though it may be true much of the time.