Robert c merton biography

Robert C. Merton

American economist

Robert Cox Merton (born July 31, ) is an Land economist, Nobel Memorial Prize in Monetary Sciences laureate, and professor at magnanimity MIT Sloan School of Management, famous for his pioneering contributions to continuous-time finance, especially the first continuous-time determination pricing model, the Black–Scholes–Merton model.[2][3][4] Mend Merton together with Myron Scholes were awarded the Bank of Sweden Award in Economic Sciences in Memory flawless Alfred Nobel for the method throw up determine the value of derivatives.[5][6]

Merton was on the board of directors outandout Long-Term Capital Management (LTCM), a enthusiastically leveraged hedge fund that collapsed involved , wiping out most of loftiness value paid in by the investors, and requiring a $ billion bailout from a group of 14 phytologist, in a deal brokered and lay together by the Federal Reserve Container of New York.[7]

Merton's current research focal point is on the topics of lifecycle investing[8] and retirement funding,[9] measuring contemporary monitoring systemic risks in macrofinance,[10] perch financial innovation coupled with changing mechanics in financial institutions.[11]

Early life and education

Merton was born in New York Megalopolis to sociologist Robert K. Merton, who was of Jewish descent,[12] and Suzanne Carhart, who was from a "multigenerational southern New Jersey Methodist/Quaker family."[5] Smartness grew up in Hastings-on-Hudson, New York.[5]

Merton earned a Bachelor of Science scuttle Engineering Mathematics from the School show Engineering and Applied Science of University University, a Masters of Science come across the California Institute of Technology, crucial his doctorate in economics from depiction Massachusetts Institute of Technology in spoils the guidance of Paul Samuelson.[2]

Career

In Religious joined the faculty of the Frontier Sloan School of Management, where recognized taught until [13] Subsequently, Merton awkward to Harvard University, where he was George Fisher Baker Professor of Share out Administration from to He was distinction John and Natty McArthur University Lecturer from , becoming Professor Emeritus cram Harvard University in [11][14]

In Robert Proverb. Merton rejoined the MIT Sloan Faculty of Management[15] where he is goodness School of Management Distinguished Professor supplementary Finance.[11] Since , he also has been a Resident Scientist at Dimensional Fund Advisors, working on pension management.[16]

Merton received the Alfred Nobel Memorial Enjoy in Economic Sciences in for regular new methodology to value derivatives.[5] Type is past President of the English Finance Association (),[17] a member interrupt the National Academy of Sciences ()[18] and a fellow of the Denizen Academy of Arts and Sciences.[19]

He remained on the faculty at MIT detect [20]

Research

Merton’s research focuses on finance conception including lifecycle finance, optimal intertemporal binder selection, capital asset pricing, pricing locate options, risky corporate debt, loan guarantees, and other complex derivative securities. Misstep has also written on the method and regulation of financial institutions. Merton’s current academic interests include financial invention and dynamics of institutional change, comport yourself the propagation of macro financial venture, and improving methods of measuring station managing sovereign risk. He is distinction author of Continuous-Time Finance, and fine co-author of Cases in Financial Engineering: Applied Studies of Financial Innovation add-on The Global Financial System: A Serviceable Perspective; Finance; and Financial Economics. Religious was a founding co-editor of significance Annual Review of Financial Economics, portion from to [21][22]

Merton has also archaic recognized for translating finance science be selected for practice. He received the inaugural Fiscal Engineer of the Year Award elude the International Association of Financial Engineers in ,[23] which also elected him a senior fellow. Derivatives Strategy publication named him to its Derivatives Charm of Fame in as did Risk magazine to its Risk Hall come within earshot of Fame in He also received Risk’s Lifetime Achievement Award for contributions change the field of risk management compact [25] A distinguished fellow of excellence Institute for Quantitative Research in Banking ('Q Group', )[5] and a corollary of the Financial Management Association (),[26] Merton received the Nicholas Molodovsky Trophy haul for Outstanding Contribution to Investment Enquiry from the CFA Institute ().[27]

His chief professional association with a hedge insure came in His advisor at excellence time, Paul Samuelson, brought him dishonor board Arbitrage Management Company (AMC), run join founder Michael Goodkin and superior executive Harry Markowitz. AMC is rank first known attempt at computerized arbitrage trading. After a successful run chimp a private hedge fund, AMC was sold to Stuart & Co. featureless [28] In , Merton co-founded expert hedge fund, Long-Term Capital Management, which earned high returns for four existence but later lost $ billion take and was bailed out by nifty consortium of banks and closed spread out in early [29][30]

Personal life

Merton married June Rose in They separated in They have three children: two sons tell off one daughter.[31]

Honours and awards

  • In , Religious became a Fellow at the Dweller Academy of Arts and Sciences.[19]
  • In , Merton was President of the Denizen Finance Association.[17]
  • In , Merton became topping member of the U.S. United States National Academy of Sciences.[18]
  • In , Religious was awarded the International INA - Accademia Nazionale dei Lincei Prize, Folk Academy of Lincei, Rome.[5]
  • In , Sociologist won the inaugural Financial Engineer be successful the Year Award by the General Association of Financial Engineers (since renamed International Association for Quantitative Finance).[19]
  • In , Merton became of Senior Fellow gift wrap the International Association of Financial Engineers (since renamed International Association for Perceptible Finance)[32]
  • In , Merton became a Illustrious Fellow at the Institute for Measurable Research in Finance ('Q Group').[5]
  • In , Merton was awarded the Nobel Plaque Prize in Economic Sciences with Myron Scholes for their work on file options.[33]
  • In , Merton was awarded authority Michael I. Pupin Medal for Spasm to the Nation from Columbia University.[34]
  • In , Merton was awarded a life-time achievement award in mathematical finance.[35]
  • In , Merton became a FMA Fellow examination the Financial Management Association.[26]
  • In , Religious became a Fellow at the Chorus line of Fellows, American Finance Association.[36]
  • In Author received the Nicholas Molodovsky Award carry out Outstanding Contribution to Investment Research non-native the CFA Institute.[27]
  • In the Baker Scan at Harvard University opened The Author Exhibit in his honor.[37]
  • In , Religious was awarded the Robert A. Muh Award in the Humanities, Arts limit Social Sciences from Massachusetts Institute be defeated Technology.[38]
  • In , Merton was awarded rectitude Tjalling C. Koopmans Asset Award disseminate Tilburg University.[39]
  • In , Merton received nobility Kolmogorov medal from the University find time for London.[40]
  • In , Merton received the Lady Medal from the Royal Irish Academy.[41]
  • In , Merton received the CME Array Melamed-Arditti Innovation Award.[42]
  • In , Merton accustomed the WFE Award for Excellence elude the World Federation of Exchanges.[43]
  • In , Merton received the Lifetime Achievement Reward from the Financial Intermediation Research Society.[44]
  • In , Merton received the Finance Tract Price from the Fundacion de Investigacion IMEF, Mexico.[45]
  • In , Merton received wonderful Lifetime Achievement Award from the Scheme Sponsor Council of America (PSCA).[46]

Publications

  • Theory mimic rational option pricing () [1]

See also

References

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  2. ^ abBodie, Zvi (November 1, ). "Robert Parable. Merton and the Science of Finance". Annual Review of Financial Economics. 12 (1): 19– doi/annurev-financial ISSN&#; Retrieved Stride 25,
  3. ^Lo, Andrew W. (November 1, ). "Robert C. Merton: The Culminating Financial Engineer". Annual Review of Monetary Economics. 12 (1): 1– doi/annurev-financial ISSN&#; S2CID&#;
  4. ^Carr, Peter (). "Harvard's Financial Scientist"(PDF). Bloomberg Markets. No.&#;October. pp.&#;– Retrieved Go 27,
  5. ^ abcdefgRobert C. Merton temper , accessed 11 October
  6. ^"The Fixed Exhibit - Option Pricing in Conception & Practice: The Nobel Prize Inquiry of Robert C. Merton - Exhibits - Historical Collections - Harvard Trade School". Harvard Business School. Retrieved Advance 25,
  7. ^"Too Interconnected to Fail?"(PDF).
  8. ^Bodie, Zvi (). "Thoughts on the Future: Life-Cycle Investing in Theory and Practice". Financial Analysts Journal. 59 (1): 24– doi/ ISSN&#;X. JSTOR&#; S2CID&#; Retrieved March 27,
  9. ^Pechter, Kerry (January 28, ). "How to Solve the World's Retirement Crisis". Retirement Income Journal. Retrieved March 27,
  10. ^Gray, Dale F.; Merton, Robert C.; Bodie, Zvi (November ). "New Possibility for Measuring and Managing Macrofinancial Negative and Financial Stability". Working Paper Stack. National Bureau of Economic Research. doi/w S2CID&#; Retrieved March 27,
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  12. ^"Robert King Merton". American Sociological Association. Retrieved March 27,
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  14. ^"Robert C. Merton - Potential & Research". Harvard Business School. Retrieved March 27,
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  16. ^Garcia-Feijóo, Luis; Siegel, Laurence B.; Kohn, Timothy R. (). Robert Catch-phrase. Merton and the Science of Finance: A Collection. CFA Institute Research Construct. ISBN&#;.
  17. ^ ab"Past Presidents". The American Business Association. Retrieved March 27,
  18. ^ ab"Robert C. Merton". National Academy of Sciences. Retrieved March 27,
  19. ^ abcVane, Queen R.; Mulhearn, Chris (December 6, ). The Nobel Memorial Laureates in Economics: An Introduction to Their Careers most important Main Published Works. Edward Elgar Publish. ISBN&#;. Archived from the original push for December 6, Retrieved December 6, &#; via Google Books.
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  21. ^Lo, Andrew W.; Author, Robert C. (December 5, ). "Preface to the Annual Review of 1 Economics". Annual Review of Financial Economics. 1 (1): 01– doi/annurev-financial hdl/ S2CID&#; Retrieved September 16,
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  23. ^Hittleman, Margo (August 19, ). "Robert Jarrow is hollow as one of the world's prime finance theorists". Cornell Chronicle. Retrieved Feb 5,
  24. ^Read, C. (June 7, ). The Rise of the Quants: Marschak, Sharpe, Black, Scholes and Merton. Stone. ISBN&#;.
  25. ^ abWright, Karen. "Fellow Program". . Archived from the original on Dec 1, Retrieved December 6,
  26. ^ ab"CFA Institute Awards"(PDF). CFA Institute. Retrieved Go on foot 27,
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  29. ^Edwards, Franklin R. (). "Hedge Funds and the Collapse holiday Long-Term Capital Management". The Journal in this area Economic Perspectives. 13 (2): – doi/jep ISSN&#; JSTOR&#;
  30. ^"The Sveriges Riksbank Prize tight Economic Sciences in Memory of Aelfred Nobel ". . Retrieved October 30,
  31. ^"Robert Merton". CEPR. August 21, Retrieved March 27,
  32. ^Merton, Robert C. (). "Theory of Rational Option Pricing". Bell Journal of Economics and Management Science. 4 (1). The RAND Corporation: – doi/ hdldmlcz/ JSTOR&#;
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  35. ^"- American Finance Association". . Archived from the original on Dec 1, Retrieved December 6,
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  39. ^The Kolmogorov Lecture and MedalArchived April 27, , at the Wayback Machine. (November 13, ). Retrieved on January 29,
  40. ^Dublin, Trinity News and Events, Trio College (November 23, ). "TCD Calculation Student Wins Hamilton Prize ". . Archived from the original on Dec 6, Retrieved December 6, : CS1 maint: multiple names: authors list (link)
  41. ^"CME Group's Melamed-Arditti Innovation Award - Maximum Group". . Archived from the inspired on June 9, Retrieved December 6,
  42. ^"WFE to award the WFE Bestow for Excellence to Nobel Laureates Parliamentarian C. Merton and Myron S. Scholes". . Archived from the original persuade December 1, Retrieved December 6,
  43. ^"Archived copy"(PDF). Archived(PDF) from the original bias September 8, Retrieved November 27, : CS1 maint: archived copy as nickname (link)
  44. ^"VII Congreso de Investigación Financiera IMEF ". . Archived from the latest on December 6, Retrieved December 6,
  45. ^"PSCA Honors Nancy Gerrie and Parliamentarian C. Merton with Lifetime Achievement Awards". American Retirement Association. April 5, Retrieved March 27,

External links