French doctoral student, Louis Bachelier, successfully defended his thesis Th orie de la Sp culation at the Sorbonne.
This book offers great insight into the historical developments of probability and mathematical finance..
He came up with a formula that is both correct on its own terms and surprisingly close to the Nobel Prize-winning solution to the option pricing problem by Fischer Black, Myron Scholes, and Robert Merton in 1973.
His purpose, however, was to give a Theory for the valuation of financial options.
In mathematical terms Bachelier\'s achievement was to introduce many of the concepts of what is now known as stochastic analysis.
Bachelier\'s thesis is a remarkable document on two counts.
This book provides a new translation of Bachelier\'s seminal work.
French doctoral student, Louis Bachelier, successfully defended his thesis Th orie de la Sp culation at the Sorbonne
