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Harnessing the Building Blocks of Economic Valuation: Exploring the Work of Nobel Laureate Robert C. Merton, PhD

Posted: 8 May 2013  

Journal of Investment Consulting Submitter

Investment Management Consultants Association

Date Written: March 1, 2013

Abstract

Using his background and skills in mathematics and engineering, Robert C. Merton expanded a new theory for options pricing into a fundamental valuation tool that became the standard in financial markets around the world, coining the term “the Black-Scholes model.” Together with the originators of the theory, Myron S. Scholes and Fischer Black, he laid the foundation that made possible the growth of the derivatives markets and provided the basis for the creation of new types of financial investments and development of economic valuation across other areas. In 1997, Dr. Merton’s work was recognized, along with that of Myron Scholes, with the Nobel Memorial Prize in Economic Sciences, which cited their pioneering work and its impact on efficient risk management. Over the years, Dr. Merton’s research has focused primarily on mathematical finance theory in the areas of capital markets and financial institutions.

In November 2012, Dr. Merton spoke with members of the Journal of Investment Consulting’s Editorial Advisory Board about the accomplishments and challenges that shaped his career, the changing environment for defined benefit and defined contribution plans, and major issues facing the industry in coming years.

Keywords: Robert C. Merton

JEL Classification: G10, G11

Suggested Citation

Consulting Submitter, Journal of Investment, Harnessing the Building Blocks of Economic Valuation: Exploring the Work of Nobel Laureate Robert C. Merton, PhD (March 1, 2013). Journal of Investment Consulting, Vol. 14, No. 1, 5-16, 2013. Available at SSRN: https://ssrn.com/abstract=2235327

Journal of Investment Consulting Submitter (Contact Author)

Investment Management Consultants Association ( email )

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