Harvard Business Review

JUNE 9, 2011

He and two other economists created the trading process called Black-Scholes that impacted the ways financial markets were informed and influenced. Two years earlier, in the mid-nineties, an MIT professor had joined the Harvard Business School faculty and one year later won the Nobel Prize in economics. You see the problem.

Merton 15

Merton Black-Scholes Welch Organizational Behavior 15

Harvard Business Review

SEPTEMBER 29, 2014

Index funds initially were brought to market by Vanguard founder Jack Bogle, whose idea for the S&P 500 Index fund was heavily influenced by two economists: late great MIT economist Paul Samuelson and Princeton’s Burton Malkiel, author of the classic, A Random Walk Down Wall Street.

Strategy 12

Strategy Black-Scholes Airlines Price 12

Harvard Business Review

DECEMBER 22, 2016

In the case of stock options, the EFV formula is typically a Black-Scholes-Merton option-pricing model that, rooted in the “efficient markets hypothesis,” assumes that changes in a company’s stock-price exhibit a log-normal distribution and thus predicts that most stock-price changes will be very small.

CEO 8

CEO Black-Scholes Price Merton 8