The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1997
Robert C. Merton, Myron S. Scholes
Myron S. Scholes
Born: 1 July 1941, Timmins, ON, Canada
Affiliation at the time of the award: Long Term Capital Management, Greenwich, CT, USA
Prize motivation: "for a new method to determine the value of derivatives"
Field: financial economics
Contribution: Developed a method of determining the value of derivatives, the Black-Scholes formula (together with Fischer Black, who died two years before the Prize award). This methodology paved the way for economic valuations in many areas. It also generated new financial instruments and facilitated more effective risk management in society. The work generated new financial instruments and has facilitated more effective risk management in society.