1997 Nobel Economics Laureate Myron Scholes To Speak At Rotman School March 26: Canadian Expert on Derivatives To Help Launch New Finance Centre

March 16, 1998

TORONTO -- Canadian-born Myron Scholes, the co-winner of the 1997 Nobel Prize in Economics for his work in the field of derivatives, will speak on "Derivatives in a Dynamic Environment" at the Rotman School of Management on Thursday, March 26 at 4 pm.

The lecture marks the launch of the Rotman School's Centre for Finance Studies, which has a mission to work closely with the business community to share the results of the high quality relevant research in finance at the Rotman School, and to support new research in finance.

Scholes' presentation will also be the inaugural event of the Rotman School of Management Great Minds for Great Business Lecture Series.

"Myron Scholes is internationally known for his seminal work in options pricing. It is a remarkable honour for the Centre and the Rotman School to have him speak at our launch," says Prof. John Hull, the director of the Centre.

Prof. Scholes, the Frank E. Buck Professor, Emeritus,at the Stanford University Graduate School of Business, was awarded the Nobel Prize for developing a new method to determine the value of derivatives. He shares the award with Prof. Robert Merton of Harvard Business School. The formula was developed by Prof. Scholes with the late Prof. Fischer Black and first published in the Journal of Political Economy in May 1973. The formula was furthered developed by Prof. Merton who showed its broad applicability. The

Black-Scholes options pricing model has become the benchmark formula for the valuation of stock options. Today thousands of investors and traders use the formula every day to value stock options in markets around the world.

Scholes, a native of Timmins, Ontario, graduated from McMaster University in 1961 before completing his MBA and Ph.D. at the University of Chicago.

He was on the faculty of the Stanford Graduate School of Business from 1983 to 1996 and was also a professor of law at the Stanford Law School. Prior to that, he was a faculty member at MIT and at the University of Chicago. He retired from Stanford last year to serve as principal and limited partner of Long-Term Capital Management, a Connecticut investment management firm he co-founded in 1994. The firm specializes in the development of application of sophisticated financial technology for investment managers.

In 1992, while still at Stanford, Prof. Scholes was named a managing director of Salomon Brothers and then co-head of its fixed-income derivative sales and trading department. He left Salomon in 1993.