BBC News - Black-Scholes: The maths formula linked to the financial crash

26 bookmarks. First posted by redshaw april 2012.

It's not every day that someone writes down an equation that ends up changing the world. But it does happen sometimes, and the world doesn't always change for the better. It has been argued that one formula known as Black-Scholes, along with its descendants, helped to blow up the financial world.

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My Educated Take:

Black-Scholes worked as long as not everyone starts to use it. As everyone starts to use it (excluding deviations) - it becomes worthless.

Black-Scholes is also ONLY one of the many puzzles that led to the GFC (2008)

GFC
Black-Scholes
Equation
...

My Educated Take:

Black-Scholes worked as long as not everyone starts to use it. As everyone starts to use it (excluding deviations) - it becomes worthless.

Black-Scholes is also ONLY one of the many puzzles that led to the GFC (2008)

july 2012 by asterisk2a

april 2012
by conner

It's not every day that someone writes down an equation that ends up changing the world. But it does happen sometimes, and the world doesn't always change for the better. It has been argued that one formula known as Black-Scholes, along with its descendants, helped to blow up the financial world.

20120427_mathematics_finance_crisis_prediction_chaos_market_economy
april 2012 by Vacilando

Good read, and a reminder: "Black-Scholes: The maths formula linked to the financial crash" http://t.co/edmChDPg

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april 2012 by tguemes

april 2012
by amy

Black-Scholes: The maths formula linked to the financial crash @jiffyteefy

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april 2012 by isaacsu

BBC News - Black-Scholes: The maths formula linked to the financial crash

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april 2012 by ngpestelos

RT @RichardHulse: Black-Scholes: The maths formula linked to the financial crash

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april 2012 by sminnee

The cause of our eminent financial collapse is getting sucked down a Black-Scholes.

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april 2012 by drhambrick

Black-Scholes: The maths formula linked to the financial crash (via @jasebell)

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april 2012 by gobansaor