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Option Pricing Theory

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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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  1. http://link.springer.com/referencework/10.1007/978-1-349-95121-5

    Jonathan E. Ingersoll Jr.

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  1. Jonathan E. Ingersoll Jr.
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Ingersoll, J.E. (2018). Option Pricing Theory. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1707

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