Evidence Suggests Ed Thorp Discovered The Black-Scholes Model Years Before The Nobel Prize Winners

"Edward O. Thorp has made a tremendous career from finding opportunities and properly exploiting them as advertised in this ground breaking book.

There is no one in the financial world who has had a better risk-adjusted return than Thorp for the last 30 years.

Virtually unknown is the fact that years before [Fischer Black & Myron Scholes], Thorp invented/discovered the formula that is attributed to Black-Scholes [that won them the Nobel Prize], with the exception of the risk-free interest rate factor, because of existing market structure that prevented interest from being a factor.

And Thorp's treatment of the Kelly Criterion makes this a standout work. Since many have never read this book yet or tried to apply the principles that Thorp revealed in this book, it would be easy to dismiss this as some worn-out idea that has come and gone. Far from it. There is a reason that the few copies that were printed are still in demand. The old saying is that those who can, do - while those who can't, teach. Thorp proved that he was the former."

(Source: Amazon.com book review, -"J.R.", March 23, 2007)