Pricing the Future: The 300-Year Quest for the Equation That Changed Wall Street

Pricing the Future The Year Quest for the Equation That Changed Wall Street Options have been traded for hundreds of years but investment decisions were based on gut feelings until the Nobel Prizewinning discovery of the Black Scholes options pricing model in ushered in

  • Title: Pricing the Future: The 300-Year Quest for the Equation That Changed Wall Street
  • Author: George G. Szpiro
  • ISBN: 9780465022489
  • Page: 110
  • Format: Hardcover
  • Options have been traded for hundreds of years, but investment decisions were based on gut feelings until the Nobel Prizewinning discovery of the Black Scholes options pricing model in 1973 ushered in the era of the quants Wall Street would never be the same In Pricing the Future, financial economist George G Szpiro tells the fascinating stories of the pioneers of mathOptions have been traded for hundreds of years, but investment decisions were based on gut feelings until the Nobel Prize winning discovery of the Black Scholes options pricing model in 1973 ushered in the era of the quants Wall Street would never be the same In Pricing the Future, financial economist George G Szpiro tells the fascinating stories of the pioneers of mathematical finance who conducted the search for the elusive options pricing formula From the broker s assistant who published the first mathematical explanation of financial markets to Albert Einstein and other scientists who looked for a way to explain the movement of atoms and molecules, Pricing the Future retraces the historical and intellectual developments that ultimately led to the widespread use of mathematical models to drive investment strategies on Wall Street.

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    • ☆ Pricing the Future: The 300-Year Quest for the Equation That Changed Wall Street || · PDF Read by ¶ George G. Szpiro
      110 George G. Szpiro
    • thumbnail Title: ☆ Pricing the Future: The 300-Year Quest for the Equation That Changed Wall Street || · PDF Read by ¶ George G. Szpiro
      Posted by:George G. Szpiro
      Published :2018-05-13T21:31:07+00:00

    One thought on “Pricing the Future: The 300-Year Quest for the Equation That Changed Wall Street”

    1. review:One of the major intellectual achievements of the 20th century was the theory of option pricing. This is its story, and it’s absolutely fascinating. Options have been around since the buying and selling of tulips and the very first efforts of investors to control their downside risk. But the economic value of such protections was not finally understood until the Nobel Prize winning research of Fischer Black, Myron Scholes, and Robert Merton in the 1970’s. It could not have happened wi [...]

    2. I was disappointed by this book. I'm not even an expert on the economics and math of it, but here's what bothered me:- the story was littered with what seemed irrelevant biographical trivia of the authors. If there *was* a story or common theme behind this, I didn't get it.- the prose is a bit clumsy and full of clichés.- there's really hardly any history of ideas, putting the development of the options pricing formula in context. That's sad.- oddly, and very much to my disappointment, the auth [...]

    3. A stunning choral narration: light but detailed — even technical when needed — never rhetorical but always able to point out both the human and the "heroic" elements of the main characters' pursuits and the subtle connections between them. If you get a kick out of either the history math concepts or the reasons why our financial world came to be, then this book is definitely for you!

    4. The books covers the advances in physics and probability theory that led to the establishment of the Black-Scholes formula for pricing options. The story is told using the histories of the the scientists and mathematicians involved, and puts them into historical context. It's a great read, and a great introduction to the history of this corner of finance and the history of this branch of probability. A good exploration of the history of Brownian motion, Bachalier's story is told, and even Einste [...]

    5. Most of the stories in the book have been told by others,the book is a cut and paste of many little stories from the past.Nothing new.The author seems to think the Black scholes equation is something important, 1. the key part of the equation is Implied volatility,something not listed in the index.2. What is implied volatility? It's a fudge factor in the equation to make things work,but the fact is, no one can know what IV is without knowing first,what the price of an option is. In theory, the B [...]

    6. The book should have been titled "The History of the Development of Statistics Pertaining to Things that Move Randomly and How Smart People Used that to Sometimes Make Money/Destroy the Economy". Once one comes to terms with the fact that the scope of this book is much larger than one would think, the text turns out to be both fun and engaging.Options are a form of derivative (no actual commodity or security changes hands) where one gains the ability to buy or sell something at a future date and [...]

    7. I can't decide why I liked this book so much. Is it the development of Bachelier's ideas from the 19th century on probabilities and financial markets? Is it the historical perspective of how our system of finance has come into being starting with creation of the stock market under King Louis XV? Or finally, is it how elegant theories mixed with our all too common human avaricious capacities can lead even the best, the most knowledgeable and the most connected astray?From the tulipomania of Holla [...]

    8. (3.5) Well-written history (emphasize history) of Black-ScholesTraces the history of the formula to value stock options from the very beginning (issuing of stock, development of futures, tulipomania etc.). All good stuff, but for a few glaring typos, particularly in chapter 16 or 17 (missing words, use of a subscript instead of superscript on a particular term in text describing the formula). Some careless stuff in there.So good history, well-told and enjoyable. But we're really light on the mat [...]

    9. Interesting, but a bit unfocused, wanders all over the place, and in the end I am not sure I learned very much.If you want to have a good understanding of how options work, their history and the Black-Scholes equation (which you might expect from the title), I think you'll come away disappointed. Sure, all of these things are discussed, but in a rather superficial way without enough depth to really get any insight.

    10. You wouldn't think learning the history of the Black-Scholes pricing formula would be much of a read. This book changes that. The author thoroughly covers the history the market, and the history of the science that lead to the eventual discovery of the equation and its solution. It is an excellent and exciting trip through time which provides a solid understanding of what its all about. There are even some cautionary tales for the modern option buyer.

    11. The author threw in a lot of needless information of many many people that weren't key figures in this book. I was a bit disappointed because I thought it would be more along the lines of how the Black Scholes formula formed the derivatives market, but this book is about the history behind the creation of the formula.

    12. There is a mistake in my edition of the book in the appendix where the feeling for how the formula is derived is presented (A Pedestrian's guide) 1/2 * \frac partial^2C*partial S^2\sigma^2S^2 should be preceded by "-" instead of "+" and I did not like _at all_ how author reacted to it once it was pointed out.

    13. A great walk through the history and evolution of pricing financial options. I thought it was especially engaging how the author tied in landmark advances in the natural sciences which contributed to the math of finance.

    14. All this book shows is that at the dawn of economics clever mathematics have been invented but found not to describe reality well so it was later fudged and amended by "lucky guesses" (?) until people thought it did.

    15. More of a 2.5 than a 2. Some good, interesting information in here, but it could have done away with a lot of the biographical fluff on various historical players, and maybe have added some more technical details. The writing was pretty mediocre and the copy-editing was not great.

    16. Great book. Its amazing how all these scientists built on each other. It is funny to read about how economics papers were written and that mathematical formulas were shunned from the academic community.I really should read this book over again so I understand it completely

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