DEFINITION of 'Myron S. Scholes'
An American economist and winner of the 1997 Nobel Prize in Economics along with Robert Merton for their method of determining the value of stock options, the BlackScholes model. (Fischer Black, the coauthor of the BlackScholes equation on which the model is based, died in 1995.) Scholes' research has also focused on taxation and incentives.
BREAKING DOWN 'Myron S. Scholes'
Scholes earned an MBA and Ph.D. from the University of Chicago. He taught at the Massachusetts Institute of Technology (MIT) and the University of Chicago before joining Stanford in 1983 as a finance professor. Scholes was also a cofounder of the hedge fund LongTerm Capital Management, which was initially extremely successful but later failed spectacularly, which led to a group of large banks bailing them out to prevent an averse reaction in the financial markets.

Robert C. Merton
An American economist who won the 1997 Nobel Memorial Prize in ... 
Black Scholes Model
A model of price variation over time of financial instruments ... 
Merton Model
A model, named after the financial scholar Robert C. Merton, ... 
Black's Model
A variation of the popular BlackScholes options pricing model ... 
William F. Sharpe
An American economist who won the 1990 Nobel Prize in Economics, ... 
Douglass C. North
An American economist and winner of the 1993 Nobel Memorial Prize ...

Investing
Understanding the BlackScholes Model
The BlackScholes model is a mathematical model of a financial market. From it, the BlackScholes formula was derived. The introduction of the formula in 1973 by three economists led to rapid ... 
Options & Futures
NYIF Instructor Series: Black Scholes Model
In this short instructional video Anton Theunissen explains the Black Scholes model. 
Options & Futures
Circumvent Limitations of BlackScholes Model
Mathematical or quantitative modelbased trading continues to gain momentum, despite major failures like the financial crisis of 200809, which was attributed to the flawed use of trading models. ... 
Options & Futures
How To Build Valuation Models Like BlackScholes (BS)?
Want to build a model like BlackScholes? Here are the tips and guidelines for developing a framework with the example of the BlackScholes model. 
Options & Futures
Breaking Down The Binomial Model To Value An Option
Find out how to carve your way into this valuation model niche. 
Options & Futures
Quant Strategies  Are They For You?
Using the power of modern computers and the input of many financial experts, these models automatically execute trades for you. 
Fundamental Analysis
Examples To Understand The Binomial Option Pricing Model
Binomial option pricing model, based on risk neutral valuation, offers a unique alternative to BlackScholes. Here are detailed examples with calculations using Binomial model and explanation ... 
Options & Futures
How & Why Interest Rates Affect Options
The Fed is expected to change interest rates soon. We explain how a change in interest rates impacts option valuations. 
Options & Futures
The Anatomy of Options
Find out how you can use the "Greeks" to guide your options trading strategy and help balance your portfolio. 
Options & Futures
Using Decision Trees In Finance
These decisionmaking tools play an integral role in corporate finance and economic forecasting.

What is the average return on equity for a company in the electronics sector?
Learn about the BlackScholes option pricing model and the binomial options model, and understand the advantages of the binomial ... Read Answer >> 
How is implied volatility used in the BlackScholes formula?
Learn how implied volatility is used in the BlackScholes option pricing model, and understand the meaning of the volatility ... Read Answer >> 
How is implied volatility for options impacted by a bearish market?
Learn why implied volatility for option prices increases during bear markets, and learn about the different models for pricing ... Read Answer >> 
Can delta be used to calculate price volatility of an option?
Learn how implied volatility is an output of the BlackScholes option pricing formula, and learn about that option formula's ... Read Answer >> 
What technical skills must one possess to trade options?
Learn about the technical skills required to trade options and how mathematical and computer science skills give you a better ... Read Answer >> 
How is the price of a derivative determined?
Learn how different types of derivatives are priced, including how futures contracts are valued and the BlackScholes option ... Read Answer >>