The Pricing of Options and Corporate Liabilities, Black-Scholes, 1973

This is one of the legendary papers in finance, where Fischer Black and Myron Scholes introduced their methodology of option pricing that is now known as the Black-Scholes(-Merton) Option Pricing Model. The Pricing of Options and Corporate Liabilities was first published in the Journal of Political Economy, Vol. 81, No. 3 (May – Jun 1973), pp. 637-654, The University of Chicago Press.

The Pricing of Options and Corporate Liabilities PDF

Here you can download the paper in pdf for free (the following are a few links that are working as I am publishing this post – if one fails, try another; if all fail, try Google):

F. Black about The Pricing of Options and Corporate Liabilities, 1987

This is an interesting one-page article where Fischer Black briefly describes the process that led him and Myron Scholes to discovering their option pricing model and how The Pricing of Options and Corporate Liabilities was first rejected by the Journal of Political Economy and accepted only after a suggestion by Merton Miller and Eugene Fama.

Download link:

Merton’s Extension of the Black-Scholes Model

Robert C. Merton further examined the model introduced in The Pricing of Options and Corporate Liabilities, derived an alternative formula, and provided several extensions of the model. Together with The Pricing of Options and Corporate Liabilities, Merton’s Theory of Rational Option Pricing (1973) represents the foundation of what is now known as the Black-Scholes(-Merton) Option Pricing Model.


Related pages


formula for calculating the medianpercentile calculator mean sdaverage true range formuladefine moving averagestheta black scholeswhat happens when you square a negative numbervxx optionsdeviation from the mean calculatornegative sharpe ratiovix futures trading hoursmean sd calculatorleptokurtic platykurticstandard deviation of the mean calculatorvxx barclaysintrinsic value excelwhat happens when options expire in the moneywhen do vix options expirehedge calculatorpowershares etf listsum of squares excelreturns calculator exceledgar 13f filingsformula for sample variancehistorical vixsortino ratio interpretationintrinsic value call optionbond volatility formulaskewness financesample variance and standard deviationetf xivmeasuring skewnessintrinsic value calculatorrsi divergencesharpe measurecalculate rsihow to read macd indicatorfree float market capitalisationvixyexcel normsdistskewness equationvix future quotescboevixstraddle stockvix historical pricesvix derivativeswacc formulaevelocityshares daily inverse vixsharpe ratio optimal portfolionatural log function in excelvariance calculator excelblack scholes spreadsheethedge fund arbitragesimple excel formulasvolatile meaning in financehow is the dow jones industrial average calculatedcboe vix datacalculate wacc examplespx settlement priceannualized return formulahow to change background color in notepaddelta option greekaapl stock historyfinding variance on excelhow to calculate standard deviation excelweighted average inventory costinglist of 13f securitiesexcel sample formulasvix downloaddow weightingcoefficient of skewness formulainverse s&p etf