A look at derivative trading before Black and Scholes.

In a forthcoming Journal of Finance piece, Moore and Juh examine how options were priced 60 years BEFORE the Black-Scholes formula. They find that when markets were competitive, the pricing errors were about the same that we find today!Summary: Previous research on the efficiency of option pricing is mixed. This may be because of poor data (example monthly data) or actual mispricing.In this paper