Myron S. Scholes


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 Black-Scholes model. (Fischer Black, the co-author of the Black-Scholes 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 co-founder of the hedge fund Long-Term 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.

  1. Black Scholes Model

    A model of price variation over time of financial instruments ...
  2. Tax Evasion

    An illegal practice where a person, organization or corporation ...
  3. Black's Model

    A variation of the popular Black-Scholes options pricing model ...
  4. Long-Term Capital Management - ...

    A large hedge fund led by Nobel Prize-winning economists and ...
  5. Tax Avoidance

    The use of legal methods to modify an individual's financial ...
  6. Put-Call Parity

    A principle that defines the relationship between the price of ...
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