Description: In 1973, three brilliant economists, Fisher Black, Myron Scholes and Robert Merton, discovered a mathematical breakthrough that revolutionized modern finance. The elegant formula they unleashed upon the world was sparse and deceptively simple, yet it led to the creation of a mulit-trillion dollar industry. Their bold ideas earned them a Nobel Prize and attracted the elite of Wall Street.
In 1993, Scholes and Merton joined forces with John Merriweather, the legendary bond trader of Salomon Brothers. With 13 other partners, they launched a new hedge fund, Long Term Capital Management, that promised to use mathematical models to make investors tremendous amounts of money with little risk. Their money machines reaped fantastic profit, until their theories collided with reality, sending them spiraling out of control. This crisis threatened to bring markets around the world to the brink of callapse.
Join NOVA in the quest to turn finance into a science. Plus, trace the little-known history of predicting financial markets and go to work with some successful modern traders who rely on intuition, as well as on mathematical models.
Customer Reviews
Average Rating:
Rating: - TDB, the best video on investing ever!!
This is the most engaging and informative video on the subject of trading and speculation that exists. As Jesse Livermore stated, Speculation is as old as the hills. This video captures many of the aspects ... Read More
Rating: - Nice
Very nice video! Tells the story of LTCM. It's not a deep documentary...they don't tell the details of operations LTCM did. They only tell about the mathematic formula that they got to manage the fund.
Rating: - Biased but interesting
This program attempts to give an overview of the history and investment strategies of Long Term Capital Management, an investment firm and hedge fund that began in the mid nineties and was finally closed in 1999. ... Read More
Rating: - "Mathematics does not drive financial markets. People do."
Telling the story of Long Term Capital Management and the mathematical formula underlying its investment strategy, this NOVA special traces the development of the formula which helped to create a multi-trillion dollar ... Read More
Rating: - Trillion Dollar Bet
This is really a great video. If you have a passion for finance, you do have to watch it. It's an excellent opportunity to see the smartest people in the world of derivatives both "practitioners" and academics from top ... Read More
- TDB, the best video on investing ever!!
- Nice
- Biased but interesting