Did Someone at J.P. Morgan Tell Pretty 25 Year Old She's Going to Decline in Value?

The New York Times reports:

Last month on Craigslist.com, someone who described herself as a “spectacularly beautiful” 25-year-old placed a personal ad seeking a husband who made at least $500,000 a year, because “$250,000 won’t get me to Central Park West.”

As her post hit the blogs, it received a scathing response from a man who said he fit her description and told her that her proposition was a bad business deal. “In economic terms, you are a depreciating asset and I am an earning asset,” he wrote, because “your looks will fade and my money will likely continue into perpetuity.”

Last week, this exchange spilled over into the e-mail world, where the it turned into a popular item to send to friends as a joke. The difference between this and other outrageous share-mail messages, however, was that instead of remaining anonymous, its ostensible author signed his name and the company where he worked, which happened to be the investment banking division of JPMorgan Chase.

This detail, which may have provoked nearly as much mirth as the contents of the exchange, made the correspondence either more or less credible. Would someone with a big job at a prestigious company really have linked his name to a message that read in part: “You’re 25 now and will likely stay pretty hot for the next 5 years, but less so each year. Then the fade begins in earnest. By 35 stick a fork in you!”

For a greater understanding of the time value of options,read up on the Black-Scholes model.