Definitions for "Scholes"
Myron S. Scholes is the co-inventor (with Robert Merton and Fischer Black) of a formula that turned risk management from a guessing game into a science. The Black-Scholes formula for valuing options answered the question that many generations of mathematical economists had unsuccessfully struggled to solve. The Black-Scholes option pricing model led to an explosive growth in stock options and other financial derivatives. Uses for the formula have been found in virtually every area of finance. The Nobel Committee recognised Professor Scholes jointly with Robert C. Merton “for a new method to determine the value of derivatives.