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This paper describes and analyses the history of the fundamental equation of modern financial economics: the Black-Scholes (or Black-Scholes-Merton) option pricing equation. In that history, several themes of potentially general importance are revealed. First, the key mathematical work was not rule-following but bricolage, creative tinkering. Second, it(More)
The thesis discussed in this book – that economics is ―performative‖ (Callon 1998) – has provoked much interest but also some puzzlement and not a little confusion. The purpose of this chapter is to examine from the viewpoint of performativity one of the most successful areas of modern economics, the theory of options, and in so doing hopefully to clarify(More)
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This article investigates one important strand in the evolution of today's high-frequency trading or HFT (the fast, automated trading of large numbers of financial securities). That strand is the history of the automation of trading on what has become the world's most prominent futures exchange, the Chicago Mercantile Exchange or Merc. The process of the(More)