Myron Scholes
Myron Scholes
Full Name and Common Aliases
Myron Samuel Scholes is a Canadian economist, mathematician, and Nobel laureate. He is widely known for his work in option pricing theory, which revolutionized the field of finance.
Birth and Death Dates
Born on January 1, 1941, in Timmins, Ontario, Canada. Still active and alive.
Nationality and Profession(s)
Canadian by birth and nationality, Scholes holds dual citizenship with both Canada and the United States. He is a renowned economist, mathematician, and Nobel laureate, best known for his contributions to finance theory.
Early Life and Background
Scholes grew up in a family of modest means. His father was a dentist, and his mother was a homemaker. Scholes developed an early interest in mathematics and economics, which would eventually shape his career. He pursued higher education at the University of Chicago, where he earned his Bachelor's degree in 1962 and Ph.D. in Economics in 1969.
Major Accomplishments
Scholes' work on option pricing theory is widely regarded as one of the most significant contributions to finance in the past century. Alongside Robert Merton, Scholes developed a groundbreaking model for valuing options, which accurately predicted their prices based on underlying stock prices and volatility. This work led to the development of the Black-Scholes-Merton (BSM) equation, a fundamental tool in modern finance.
Notable Works or Actions
Scholes has authored numerous papers and books on finance and economics. Some notable publications include:
"The Pricing of Options and Corporate Liabilities" (1973), a seminal paper co-authored with Fischer Black that introduced the BSM model.
"Option Pricing Theory" (1981), a comprehensive textbook that solidified Scholes' reputation as an expert in option pricing.
Impact and Legacy
Scholes' work on option pricing theory has had far-reaching implications for financial markets. The BSM equation has enabled investors to better understand and manage risk, leading to more informed investment decisions. His contributions have also paved the way for the development of new financial products and instruments.
Why They Are Widely Quoted or Remembered
Scholes is widely quoted and remembered due to his pioneering work in finance theory. His co-discovery of the BSM equation has had a profound impact on the field, earning him numerous accolades, including:
Nobel Prize in Economic Sciences (1997), awarded for contributions to financial economics.
Carnegie Mellon University's Nobel Memorial Prize in Economic Sciences (2013), awarded for outstanding contributions to economic research.
As a highly respected economist and mathematician, Scholes continues to shape the field of finance through his research and writings.
Quotes by Myron Scholes
All models have faults – that doesnt mean you cant use them as tools for making decisions.
My career in academic research has not been involved with active management of securities. I’ve tried to understand risk-and-return relationships; also the pricing of derivative securities.
All models have faults - that doesn't mean you can't use them as tools for making decisions.
All models have faults - that doesnt mean you cant use them as tools for making decisions.
Innovation must lead infrastructure for a simple but compelling reason: Innovation produces new types of products and markets, and it is virtually impossible to know how to run those markets efficiently before they are created.
Sometimes the early bird gets the worm, but sometimes the early bird gets frozen to death.
If we internationalize everything, we end up with rules that stifle freedom and innovation.