Mathematical Digest

Short Summaries of Articles about Mathematics
in the Popular Press

"Nobel Prize in Economics: Wall Street Rocket Science in a Pocket Calculator."Scientific American, January 1998, page 18.

This brief article describes the work for which economists Robert C. Merton andMyron S. Scholes received the 1997 Nobel Prize in Economics. The centerpieceof the work is the Black-Scholes options pricing model, a mathematical equationfor pricing financial derivatives. The equation was developed by Scholes andhis now-deceased collaborator Fischer Black.

--- Allyn Jackson