Better financial controls encourage risk-taking-Nobel laureate

(Reuters) - Merton was awarded the Nobel prize in economics in 1997 for
inventing the Black-Scholes options pricing formula together
with his colleagues Fischer Black and Merton Scholes.




However, the 62-year-old Harvard professor is mainly known
in the financial community as the co-founder of Long-Term
Capital Management , the hedge fund that nearly collapsed
under multi-billion dollar losses in 1998 due to highly
leveraged bets.


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