{"product_id":"louis-bacheliers-theory-of-speculation-the-origins-of-modern-finance-9780691117522","title":"Louis Bachelier's Theory of Speculation: The Origins of Modern Finance","description":"\u003cp\u003eMarch 29  1900  is considered by many to be the day mathematical finance was born. On that day a French doctoral student  Louis Bachelier  successfully defended his thesis Thorie de la Spculation at the Sorbonne. The jury  while noting that the topic was \"far away from those usually considered by our candidates \" appreciated its high degree of originality. This book provides a new translation  with commentary and background  of Bacheliers seminal work.  Bacheliers thesis is a remarkable document on two counts. In mathematical terms Bacheliers achievement was to introduce many of the concepts of what is now known as stochastic analysis. His purpose  however  was to give a theory for the valuation of financial options. 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  the first decisive advance since 1900.  Aside from providing an accurate and accessible translation  this book traces the twin-track intellectual history of stochastic analysis and financial economics  starting with Bachelier in 1900 and ending in the 1980s when the theory of option pricing was substantially complete. The story is a curious one. The economic side of Bacheliers work was ignored until its rediscovery by financial economists more than fifty years later. The results were spectacular: within twenty-five years the whole theory was worked out  and a multibillion-dollar global industry of option trading had emerged.\u003c\/p\u003e","brand":"My Store","offers":[{"title":"Default Title","offer_id":45665809104949,"sku":"ByrdShop_0691117527","price":158.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0627\/8139\/0901\/files\/9780691117522.jpg?v=1782408099","url":"https:\/\/atxbooks.com\/products\/louis-bacheliers-theory-of-speculation-the-origins-of-modern-finance-9780691117522","provider":"ATX Books","version":"1.0","type":"link"}