Risk

John Larry Kelly Jr. (December 26, 1923 – March 18, 1965), was an American scientist who worked at Bell Labs. From a system he’d developed to analyze information transmitted over networks, he created the Kelly Criterion, a formula that predicts the best way to bet or invest money. He was also a pioneer in the field of computer science and artificial intelligence.

The Black-Scholes-Merton equation is a model for pricing options. This equation revolutionized finance by providing a precise method for determining fair option prices, improving risk management and trading efficiency.