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Strategies & Market Trends : Waiting for the big Kahuna

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To: yard_man who wrote (28920)9/25/1998 1:18:00 PM
From: Mosko  Read Replies (1) of 94695
 
Here is an tidbit you all may find interesting:

Posted by Bryan W. Poe on Friday, 25 September 1998, at 10:59 a.m.

Fischer Black and Myron Scholes, The Pricing of Options and Corporate Liabilities. Journal of Political Economy 81 (May 1973), pp. 637-654. Their work laid the foundation for much of the derivatives industry. Merton Miller conducted further research which also was very important to the derivatives industry. Of these three pioneers, two are still living and they are both principals at Long-Term Capital Management LP in Greenwich, Connecticut. Recently, Mr. Black and Nr. Miller each received a Nobel Prize in Economics for their work on derivative pricing theory. The ramifications of their failure at LTCM are enormous for the derivatives industry.

From: prudentbear.com

Somehow I don't think this will be the only bailout.

Mosko
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