The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Option Pricing Theory

  • Jonathan E. IngersollJr.
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1707

Abstract

Financial contracting is as old as human history. Deeds for the sale of land have been discovered that date to before 2800 bc. The Code of Hammurabi (c1800 bc) regulated, among other things, the terms of credit. Contingent contracting was also common. Under the Code crop failure due to storm or drought served to cancel that year’s interest on a land loan. The trading of the first options is probably equally ancient.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Jonathan E. IngersollJr.
    • 1
  1. 1.