Black-Scholes Model: What It Is, How It Works, and the Options Formula

Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...
Risk

Bank of England research backs Merton model

In an article published today in the Bank of England's June Financial Stability Review, Merxe Tudela and Garry Young describe how they tested the Merton model against a database of UK company failures ...
Seeking Alpha

Credit Risk Management Using Merton Model

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. R. Merton published a seminal paper [1] that laid the foundation for the development of structural credit risk ...
Risk

Marking systemic portfolio risk with the Merton model

It has been argued that one of the factors that triggered the downfall of Long-Term Capital Management (LTCM) was its failure to properly incorporate fat tails of asset price distributions into ...
Religion News Service

In Thomas Merton, conference panelists see a model for racial justice and healing

LOUISVILLE, Ky. (RNS) If the influential Catholic writer Thomas Merton were alive today, he would likely have strong words about police brutality and racial profiling. Back in 1963, Merton called the ...
Investment U

The Black Scholes Model: An Options Pricing Formula

The Black Scholes Model is a mathematical options-pricing model used to determine the prices of call and put options. The standard formula is only for European options, but it can be adjusted to price ...