Black, Fischer (1938–1995)
Fischer Black is best known for the Black–Scholes option pricing formula, which he regarded as an application of the capital asset pricing model (CAPM). He understood the CAPM as a model of general economic equilibrium and extended it from finance to macroeconomics, including the theory of money and the theory of business cycles. His work reveals that finance was the origin of the dramatic changes in macroeconomic thinking in the last quarter of the 20th century.
KeywordsAmerican Finance Association BDT (Black–Derman–Troy) term structure model Black, F. Black–Litterman model Black–Scholes formula Capital asset pricing model Futures markets Lucas, R. Merton, R. Noise trading Option pricing theory Prescott, E. Real business cycles Scholes, M. Zero-beta model
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