The Ghost in the Black-Scholes Machine
How a 14th-Century Kerala Astronomer Became the Uncredited Engine of Wall Street The claim that the Black-Scholes option pricing model is "Indian" is neither entirely true nor false—it is a provocation exposing how global knowledge has been systematically extracted, refined, and rebranded. While Fischer Black, Myron Scholes, and Robert Merton created the financial framework that revolutionized Wall Street in 1973, the mathematical engine beneath their famous equation draws directly from infinite series pioneered by Madhava of Sangamagrama in 14th-century Kerala. This article traces the full arc: from Madhava's forgotten calculus, through the Jesuit transmission pipeline, to Srinivasa Ramanujan's mock theta functions, and finally to modern trading floors. It examines the parallel discovery claim of Thiruvenkatachari Shanthakumar, the fierce debate over independent invention versus structural appropriation, and the broader pattern of epistemological erasure that h...