Black and Scholes: pricing options by a hedged portfolio

What changed

Option pricing became a systematic model-based hedging and valuation problem rather than primarily heuristic appraisal.

Scientific scope

The Black-Scholes 1973 paper; Merton's separate extensions and empirical universality are excluded.

Evidence

The linked sources identify this contribution and its scope. WRS has not independently reconstructed the scientific claims. This records the Black–Scholes paper, not guaranteed trading profit or universal market truth. Merton’s separate 1973 paper and extensions remain separate.

Contributors

• Fischer Black · SCIENCE: Named source author of the scoped work; individual effort shares are not measured.
• Myron Scholes · SCIENCE: Named source author of the scoped work; individual effort shares are not measured.

• Black and Scholes, The Pricing of Options and Corporate Liabilities (1973)

Provisional WRS assessment, edition 2026-10-16.1. Independent expert calibration is pending. This grade does not certify correctness or assign ownership.

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