Fischer Black


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Fischer Black

An American economist known for his development of mathematical models for pricing investments. In particular, he helped create the Black-Scholes model, which is used to determine the appropriate price for option contracts. In the 1970s, he argued against both Keynesians, who believed central banks ought to have discretion to raise or lower the money supply, and monetarists, who thought the money supply should grow at a constant rate. Black lived from 1938 to 1995.
References in periodicals archive ?
He later moved to Chicago where his work on the intricacies of financial markets earned him the prestigious Fischer Black Prize for the best academic in his field under 40.
Next enters Fischer Black as the physicist, Myron Scholes and Robert Merton as economists and Jack Treynor the undergrad physics major turned math major who later went to the Harvard Business School.
Since he, along with industry pioneers Fischer Black and Bill Toy, developed the BlackDerman-Toy model, a landmark interest rate calculation still used today for bond options and interest rate derivatives, this appreciation should come as no surprise.
com)-- The American Finance Association is pleased to announce the award of the 2011 Fischer Black Prize to Xavier Gabaix, the Martin J.
This might raise some hackles amongst my fellow academics, but the truth is that the bankers around the globe bought into risk management systems largely designed by three economists: Fischer Black, Myron Scholes and Robert Merton (Scholes and Merton were both awarded the Nobel Prize for Economics in 1997 for their work, Black had died in 1995).
They address Nobel Laureates and other worthies including Markowitz, Miller, Sharpe, Merton, Scholes, Fischer Black and others who created revolutions of thought and also pay full attention to alternative perspectives such as those who developed financial economics into a scientific discipline in such areas as the efficient market hypothesis, option pricing theory, quantitative risk management and financial market prices.
Fischer Black and the Revolutionary Idea of Finance.
By now, the fascinating history of the derivatives pricing literature is well known, having been chronicled by a number of authors including Bernstein (1992), MacKenzie (2006), Mehrling (2005), and Fischer Black himself (1989).
Both boards lean towards the pricing formula developed by Fischer Black and Myron Scholes in 1973, but they also allow companies to use a binomial valuation method.
From 1982 to 2000, trading in listed equity options increased roughly tenfold, spurred on in part by the pioneering work on options modeling by economists Fischer Black, Robert Merton, and Myron Scholes.
EVER SINCE ELCONOMISTS Fischer Black, Myron Scholes, and Robert Merton derived a formula for pricing options, tens of thousands of investors have bought and old options in the financial markets.
Another, related development at approximately the same time was the formulation of the fair values for stock options by Fischer Black and Myron Scholes, "The Pricing of Options and Corporate Liabilities," Journal of Political Economy 81 (May-June 1973).