Black-Scholes definition

What does Black-Scholes mean?

Fischer Black and Myron Scholes invented formulae which showed how investments, especially in a hedge fund and especially options, should be priced. They won the Nobel Prize for their work, but it fell into disfavour after they were involved in the largest investment failure ever at the time (Long Term Capital Management lost $4.6bn in four months, thought to be a virtual impossibility)

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