Abstract
Financial contracting is as old as human history. Deeds for the sale of land have been discovered that date to before 2800 bc. The Code of Hammurabi (c1800 bc) regulated, among other things, the terms of credit. Contingent contracting was also common. Under the Code crop failure due to storm or drought served to cancel that year’s interest on a land loan. The trading of the first options is probably equally ancient.
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© 1989 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Ingersoll, J.E. (1989). Option Pricing Theory. In: Eatwell, J., Milgate, M., Newman, P. (eds) Finance. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20213-3_22
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