Scholes developed a method of determining the value of derivatives, the Black-Scholes formula, with Fischer Black, who died two years before the Prize award. This methodology paved the way for economic valuations in many areas. It also generated new financial instruments and facilitated more effective risk management in society. Read the announcement »
He is among seven scholars associated with Chicago Booth to receive a Nobel Prize, including George Stigler, 1982; Merton Miller, 1990; Ronald Coase, 1991; Gary Becker, 1992; Robert Fogel, 1993; and Eugene Fama, 2013.
Scholes, ’64, PhD ’70, is widely known for his seminal work in options pricing, capital markets, tax policy, and the financial services industry.
He is the Frank E. Buck Professor of Finance, Emeritus, at the Stanford University Graduate School of Business. He was called back to active duty in 2010. He is chairman of the board of economic advisors of Stamos Capital Management, and former chairman of Platinum Grove Asset Management, which he cofounded in 1999.
Scholes earned a PhD in 1970 from the University of Chicago, where he served as the Edward Eagle Brown Professor of Finance in the Booth School of Business from 1974 until 1983; as well as the director of the Center for Research in Security Prices from 1976 until 1983.
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