Faculty Scholarship 1994 - Present

Myron Scholes (1941- ): An Applied Financial Economist and a Laureate of 1997

Myron Scholes was born in Timmins, Ontario, Canada, in 1941. Through his parents and relatives, he became interested in economics and, in particular, finance. Because of his mother's death, he decided to attend McMaster University for undergraduate studies. The summer after his first year at the Universtity of Chicago, he secured a junior computer-programming position at the school, which gave him an opportunity to absorb how professors created and addressed their own research. Following the suggestion of Merton Miller, he entered the Ph.D. Program at the University of Chicago. After he finished his Ph.D. dissertation in the fall of 1968, he became an assistant professor of finance at the Sloan School of Management at MIT. He returned permanently to the Graduate School of Business at the University of Chicago after visiting for the year 1973-1974. During these years in Chicago, he started to work on the effect of taxation on assets pricing and incentives. He became heavily involved with the Center of Research in Security Prices at the University of Chicago between 1973-1980. In 1981, he visited Stanford University and became a permanent faculty member in the business school and the law school in 1983. In 1990, his interests shifted back to the role of derivatives in financial intermediation. He became a special consultant to Salomon Brothers, Inc., and continued on as a managing director and co-head of its fixed -income-derivative sales and trading group while still conducting research and teaching at Stanford University. In 1994, he joined with several colleagues, many from Salomon Brothers, to become a principal and co-founder of Long-Term Capital Management. He received honorary doctorate degrees from three universities: University of Paris-Dauphine in 1989, McMaster University in 1990, and Katholieke Universiteit Leuven in 1998.