American Experience
A Brilliant Madness: American Nobel Economists
Myron S. Scholes

With Robert Merton, Scholes won a Nobel for devising a new way to determine the value of stock options, generating new financial instruments and improving risk management. Explaining the origins of his interest, he once said, "My parents having lived in a gold mining part of the world, in Northern Canada, would be always buying penny stocks, or the family would tend to be buying stocks that had very low prices because there'd be some rumor that there'd be another gold find or a silver find and so the prices would shoot up and -- or not shoot up. I mean, the family wasn't seen to be getting rich, though. That got me very interested in, why was it the case that these prices tend to fluctuate?"

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