17:00 - 18:00
Keynote Address

The Intermediation Business and Financial Crises
Keynote Speaker:
Prof. Myron S. Scholes,
Stanford Graduate School of Business
1997 Nobel Laureate in Economics

Professor Myron S. Scholes is the Frank E. Buck Professor of Finance Emeritus at the Stanford Graduate School of Business. Previous academic positions held include the Edward Eagle Brown Professor of Finance at the University of Chicago, Senior Research Fellow at the Hoover Institution, Director of the Center for Research in Security Prices, and Professor of Finance at MIT’s Sloan School of Management. He served on the board of the Chicago Mercantile Exchange and Salomon Swapco.

His major contribution to finance and economics was the development of a derivatives pricing model, in conjunction with Professors Fischer Black and Robert Merton of the Massachusetts Institute of Technology. The “Black-Scholes” option pricing model, which appeared in the Journal of Political Economy article entitled “The Pricing of Options and Corporate Liabilities”, ultimately won Scholes and Merton the 1997 Nobel Prize (Black passed away in 1995). Beyond setting off an avalanche of research in risk management, asset pricing, and quantitative finance, the paper spurred astronomical growth in derivatives trading. Equipped with a robust approach for pricing contingent claims, traders became more willing to use derivatives for risk management and investment. Since the release of their 1973 paper, the notional of outstanding derivatives has grown to over $400 trillion, and that’s only counting interest rate, credit, and equity derivatives (Also following the 1973 paper, Texas Instruments came out with a calculator the prices options using the Black-Scholes model. When Scholes contacted TI for royalties, they replied that the formula was part of the public domain. When he asked for a free calculator, they suggested he go buy one). Professor Scholes has also published extensively on taxation, incentives, and econometrics.

He holds a Ph.D. in Economics from the University of Chicago, and honorary degrees from McMaster University, University of Paris-Dauphine, and Katholieke Universiteit Leuven.