- Start
- Jun 30, 197350% CONFIDENCEfrom the source
Black and Scholes Publish The Pricing of Options and Corporate Liabilities
- "The Pricing of Options and Corporate Liabilities" by Fischer Black and Myron Scholes ran in The Journal of Political Economy, volume 81, number 3, May-June 1973, pages 637-654, published by the University of Chicago Press[1]
- "After three years of efforts, the formula - named in honor of them for making it public - was finally published in 1973"[2]
- From the model's parabolic partial differential equation one deduces the Black-Scholes formula, which "shows that the option has a unique price given the risk of the security and its expected return"[2]
- Merton and Scholes received the 1997 Nobel Memorial Prize in Economic Sciences, the committee citing the discovery of risk-neutral dynamic revision "as a breakthrough that separates the option from the risk of the underlying security"; Black had died in 1995[2]
References 372% CONFIDENCE
The first entry is always the pin's source. Overall confidence is a weighted average of how firmly each reference supports the start and end times used above; a reference counts half as much for every 180 days older than the newest.
- [1]50%cs.princeton.edu/courses/archive/fall09/cos323/papers/black_scholes73.pdfcs.princeton.edu· Posted Sep 22, 2026· Starts Jun 30, 1973 ✓· 33% of score
The paper's own front matter gives a two-month issue and no day: "The Journal of Political Economy, Vol. 81, No. 3 (May - Jun., 1973), pp. 637-654". With only an issue window, the pin takes its last day rather than its first.
- [2]90%Black–Scholes modelen.wikipedia.org· Added Sep 22, 2026· 33% of score
Describes what the paper produced - a formula giving "a theoretical estimate of the price of European-style options" showing the option has a unique price given the risk of the security - and records the 1997 Nobel Memorial Prize to Merton and Scholes for the risk-neutral dynamic revision.[1]
- [3]75%Chicago Board Options Exchangeen.wikipedia.org· Added Sep 22, 2026· 33% of score
The exchange that opened in 1973, the same year, and gave the formula a market to be used in; context for why this paper changed an industry rather than only a literature.[1]
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