632598256894

3 Fischer Black, who co-invented the model, passed away prior to recognition from the Nobel
committee.
4 All data referring to equity positions, assets under management, exposure, and profits and losses in
this section come from Roger Lowenstein, When Genius Failed: The Rise and Fall of Long-Term
Capital Management (New York: Random House, 2000).
For Further Reading
Abken, Peter, and Steven Feinstein, “ Covered Call Options: A Proposal to Ease Less Developed
Country Debt,” in Financial Derivatives: New Instruments and Their Uses (Atlanta: Federal Reserve
Bank of Atlanta, 1994).
Bernstein, Peter, Against the Gods: The Remarkable Story of Risk (New York: John Wiley & Sons,
1998).
Bodie, Zvi, and Robert C. Merton, Financial Economics (Upper Saddle River, NJ: Prentice Hall,
2009).
Chance, Don M., An Introduction to Derivatives (New York: Dryden Press, 1998).
Chew, Lillian, Managing Derivative Risks: The Use and Abuse of Leverage (New York: John Wiley
& Sons, 1996).
Daigler, Robert T., Financial Futures and Options Markets: Concepts and Strategies (New York:
HarperCollins, 1994).
Dunbar, Nicholas, Inventing Money: The Story of Long-Term Capital Management and the Legends
Behind It (New York: John Wiley & Sons, 2001).
Fraser, Andrew, “ Top Banks Plan Bailout for Fund,” Associated Press, September 24, 1998.
16
Business Valuation
Michael A. Crain