The Math Formula That Lead To the Financial Crash - Slashdot
Apr-30 2012 / 09:25 EDT
Slashdot - The Math Formula That Lead To the Financial Crash:
New submitter jools33 writes "The BBC has a fascinating story about how a mathematical formula revolutionized the world of finance — and ultimately could have been responsible for its downfall. The Black-Scholes mathematical model, introduced in the 70s, opened up the world of options, futures, and derivatives trading in a way that nothing before or since has accomplished. Its phenomenal success and widespread adoption lead to Myron Scholes winning a Nobel prize in economics. Yet the widesprea...