Tag Archives: Black-Scholes

A few days ago, Unlearning Economics twitted a link to an article on "The 17 equations that changed the world." Only one was an economic equation, The Black-Scholes one, and in all fairness it did not change the world, and is not even a central one in economics. First of all, Nassim Taleb has argued convincingly (for example, here) that Black, Scholes and Merton did not invent the formula, and what they really did was to provide a theoretical justification that was compatible with...

Read More »