Myron Scholes

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Myron Scholes
Occupation	Economist

Myron S. Scholes is an economist, who along with Fischer Black was the creator of the Black-Scholes model for option pricing for which he received a 1997 Nobel Laureate in Economics.

Currently, Scholes is a director of Dimensional Fund Advisors Mutual Funds, the American Century Mutual Funds and Intelligent Markets. He has served has served as chairman of Platinum Grove Asset Mgt, LP, since October 1999 and is the Frank E. Buck Professor of Finance, Emeritus, at Stanford University's Graduate School of Business.

Scholes has served as a director of CME Group since July 2007. Previously he was a director of the CME Holdings board since its formation in August 2001 and of the CME board since 2000.^[1]

Background

Canadian-born, Scholes earned a Bachelor's degree in Economics from McMaster University in 1962. One of his professors at the university introduced him to the works of George Stigler and Milton Friedman, two University of Chicago economists that later would both win Nobel prizes in economics. After receiving his B.A., Scholes enrolled in graduate studies in economics at the University of Chicago. Here, Scholes had the opportunity to study with Eugene Fama and Merton Miller, researchers who were developing the relatively new field of financial economics. He earned his MBA in 1964 and his Ph.D. in 1969 with a dissertation written under the supervision of Merton Miller.^[2]

After graduating from the University of Chicago’s graduate school with a concentration in financial economics, he taught at the Massachusetts Insti­tute of Technology and Stanford University. In 1990 he moved to Wall Street to join Salomon Brothers, initially as a consultant and later as a managing director in fixed income derivatives sales and trading.^[3]

He formerly was a limited partner and principal of hedge fund Long Term Capital Management from 1993 until 1998, based in Greenwich, Connecticut. The company collapsed in 1998, requiring a Wall Street bailout.^[4]

He also is a member of the Chicago Mercantile Exchange (CME Group) Competititve Markets Advisory Council (CMAC), which serves as a “think tank” to develop and provide advice to the board in the form of policy, analyses, position papers and other strategic recommendations on significant market issues.

References

1. ↑ "Board of Directors”. CME Group. Retrieved on Jan. 19, 2008.
2. ↑ "Autobiography". Nobelprize.org. Retrieved on November 24, 2007.
3. ↑ "Myron Scholes”. Futures Industry Association. Retrieved on November 25, 2007.
4. ↑ "A Tax Shelter, Deconstructed". Global Policy Forum. Retrieved on November 25, 2007.