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Black-Scholes and beyond: Option pricing models Ira Kawaller, Neil A. Chriss
Publisher: MGH

On the former topic: options were used in 300 BC and became widely traded in the 1600`s, but the Black-Scholes option-pricing formula was not created until the 1970`s. I found this great resource the other day, explaining the equation at a very high level: A Beginner's Guide To The Black-Scholes Option Pricing Formula. May 31, 2009 - This Demonstration shows the values of vanilla European options in a model based on fractional Brownian motion and on ordinary geometric Brownian motion (the Black–Scholes model). Why is it the holy grail of finance equations? Mar 22, 2012 - To make the equation more correct and include the dividend, in 1973 Merton had introduce the Black-Scholes extended model, which also involve the dividend to compute the option price (Bahaguna, 2000). Nov 6, 2009 - Exactly when the stability of the welfare state began to falter, two University of Chicago professors, Fischer Black and Myron Scholes, proposed its financial replacement – or its neoliberal derivation. In spite of its having attractive properties as a model for the stock exchange, the suitability of fractional Brownian motion for option pricing is controversial. Oct 14, 2013 - Mathematics has a deep and rich history, extending well beyond the 16th century start of the scientific revolution. Jul 30, 2013 - The Black-Scholes model was first published in a 1973 paper titled “The Pricing of Options and Corporate Liabilities”. Guasoni, "No Arbitrage under Transaction Costs, with Fractional Brownian Motion and Beyond," Math. Much like This was probably a reference to the widespread use of complex derivatives, and the use of models like VaR to hide risk in the long tails of outcome distributions.