The 1997 Nobel Prize for economics (nobelprize.org/nobel_prizes/economics/laureates/1997/index.html) was awarded to Robert C. Merton and Myron S. Scholes for their early pioneering work in options pricing. The following site contains the transcript of an interview conducted by the Public Broadcasting Service (pbs.org) of the U.S. and the two professors. The interview explains the principles behind options pricing, and the excitement the news of the Nobel Prize generated for the recipients. In two short sentences, can you paraphrase Scholes and Merton’s explanation of the intuition behind their options pricingformula? pbs.org/newshour/bb/business/july-dec97/nobel_10-14.html