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Bachelier
Louis Jean-Baptiste Alphonse Bachelier (; 11 March 1870 – 28 April 1946) was a French mathematician at the turn of the 20th century. He is credited with being the first person to model the stochastic process now called Brownian motion, as part of his doctoral thesis ''The Theory of Speculation'' (''Théorie de la spéculation'', defended in 1900). Bachelier's doctoral thesis, which introduced the first mathematical model of Brownian motion and its use for valuing stock options, was the first paper to use advanced mathematics in the study of finance. His Bachelier model has been influential in the development of other widely used models, including the Black-Scholes model. Bachelier is considered as the forefather of mathematical finance and a pioneer in the study of stochastic processes. Early years Bachelier was born in Le Havre, in Seine-Maritime. His father was a wine merchant and amateur scientist, and the vice-consul of Venezuela at Le Havre. His mother was the da ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stochastic Process
In probability theory and related fields, a stochastic () or random process is a mathematical object usually defined as a family of random variables in a probability space, where the index of the family often has the interpretation of time. Stochastic processes are widely used as mathematical models of systems and phenomena that appear to vary in a random manner. Examples include the growth of a bacterial population, an electrical current fluctuating due to thermal noise, or the movement of a gas molecule. Stochastic processes have applications in many disciplines such as biology, chemistry, ecology Ecology () is the natural science of the relationships among living organisms and their Natural environment, environment. Ecology considers organisms at the individual, population, community (ecology), community, ecosystem, and biosphere lev ..., neuroscience, physics, image processing, signal processing, stochastic control, control theory, information theory, computer scien ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bachelier Model
The Bachelier model is a model of an asset price under Brownian motion presented by Louis Bachelier on his PhD thesis ''The Theory of Speculation'' (''Théorie de la spéculation'', published 1900). It is also called "Normal Model" equivalently (as opposed to "Log-Normal Model" or "Black-Scholes Model"). One early criticism of the Bachelier model is that the probability distribution which he chose to use to describe stock prices allowed for negative prices. (His doctoral dissertation was graded down because of that feature.) The (much) later Black-Scholes-(Merton) Model addresses that issue by positing stock prices as following a log-normal distribution which does not allow negative values. This in turn, implies that returns follow a normal distribution. On April 8, 2020, the CME Group posted the note ''CME Clearing Plan to Address the Potential of a Negative Underlying in Certain Energy Options Contracts'', saying that after a threshold on price, it would change its standard e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Brownian Motion
Brownian motion is the random motion of particles suspended in a medium (a liquid or a gas). The traditional mathematical formulation of Brownian motion is that of the Wiener process, which is often called Brownian motion, even in mathematical sources. This motion pattern typically consists of Randomness, random fluctuations in a particle's position inside a fluid sub-domain, followed by a relocation to another sub-domain. Each relocation is followed by more fluctuations within the new closed volume. This pattern describes a fluid at thermal equilibrium, defined by a given temperature. Within such a fluid, there exists no preferential direction of flow (as in transport phenomena). More specifically, the fluid's overall Linear momentum, linear and Angular momentum, angular momenta remain null over time. The Kinetic energy, kinetic energies of the molecular Brownian motions, together with those of molecular rotations and vibrations, sum up to the caloric component of a fluid's in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mathematical Finance
Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling in the financial field. In general, there exist two separate branches of finance that require advanced quantitative techniques: derivatives pricing on the one hand, and risk and portfolio management on the other. Mathematical finance overlaps heavily with the fields of computational finance and financial engineering. The latter focuses on applications and modeling, often with the help of stochastic asset models, while the former focuses, in addition to analysis, on building tools of implementation for the models. Also related is quantitative investing, which relies on statistical and numerical models (and lately machine learning) as opposed to traditional fundamental analysis when managing portfolios. French mathematician Louis Bachelier's doctoral thesis, defended in 1900, is considered the first scholarly work on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance
Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Administration wich study the planning, organizing, leading, and controlling of an organization's resources to achieve its goals. Based on the scope of financial activities in financial systems, the discipline can be divided into Personal finance, personal, Corporate finance, corporate, and public finance. In these financial systems, assets are bought, sold, or traded as financial instruments, such as Currency, currencies, loans, Bond (finance), bonds, Share (finance), shares, stocks, Option (finance), options, Futures contract, futures, etc. Assets can also be banked, Investment, invested, and Insurance, insured to maximize value and minimize loss. In practice, Financial risk, risks are always present in any financial action and entities. Due ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Henri Poincaré
Jules Henri Poincaré (, ; ; 29 April 185417 July 1912) was a French mathematician, Theoretical physics, theoretical physicist, engineer, and philosophy of science, philosopher of science. He is often described as a polymath, and in mathematics as "The Last Universalist", since he excelled in all fields of the discipline as it existed during his lifetime. He has further been called "the Carl Friedrich Gauss, Gauss of History of mathematics, modern mathematics". Due to his success in science, along with his influence and philosophy, he has been called "the philosopher par excellence of modern science". As a mathematician and physicist, he made many original fundamental contributions to Pure mathematics, pure and applied mathematics, mathematical physics, and celestial mechanics. In his research on the three-body problem, Poincaré became the first person to discover a chaotic deterministic system which laid the foundations of modern chaos theory. Poincaré is regarded as the cr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Saint-Malo
Saint-Malo (, , ; Gallo language, Gallo: ; ) is a historic French port in Ille-et-Vilaine, Brittany (administrative region), Brittany. The Fortification, walled city on the English Channel coast had a long history of piracy, earning much wealth from local extortion and overseas adventures. In 1944, the Allies heavily bombed Saint-Malo. The city changed into a popular tourist centre, with a ferry terminal serving the Channel Islands of Jersey and Guernsey, as well as the Southern England, Southern English settlements of Portsmouth, Hampshire and Poole, Dorset. The transatlantic single-handed yacht race Route du Rhum, which takes place every four years in November, is between Saint Malo and Pointe-à-Pitre in Guadeloupe. Population The population in 2017 was 46,097 – though this can increase to up to 300,000 in the summer tourist season. With the suburbs included, the metropolitan area's population is approximately 133,000 (2017). The population of the commune more than do ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stock Options
In finance, an option is a contract which conveys to its owner, the ''holder'', the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of compensation, or as part of a complex financial transaction. Thus, they are also a form of asset (or contingent liability) and have a valuation that may depend on a complex relationship between underlying asset price, time until expiration, market volatility, the risk-free rate of interest, and the strike price of the option. Options may be traded between private parties in ''over-the-counter'' (OTC) transactions, or they may be exchange-traded in live, public markets in the form of standardized contracts. Definition and application An option is a contract that allows the holder the right to buy or sell an underlying asset or financial i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Le Havre
Le Havre is a major port city in the Seine-Maritime department in the Normandy (administrative region), Normandy region of northern France. It is situated on the right bank of the estuary of the Seine, river Seine on the English Channel, Channel southwest of the Pays de Caux, very close to the Prime Meridian (Greenwich), Prime Meridian. Le Havre is the most populous commune of Upper Normandy, although the total population of the greater Le Havre conurbation is smaller than that of Rouen. It is also the second largest subprefecture in France, after only Reims. The name ''Le Havre'' means "the harbour" or "the port". Its inhabitants are known as ''Havrais'' or ''Havraises''. The city and Port of Le Havre, port were founded by Francis I of France, King Francis I in 1517. Economic development in the early modern period was hampered by European wars of religion, religious wars, conflicts with the English, epidemics, and storms. It was from the end of the 18th century that Le Havre st ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
University Of Burgundy
The University of Burgundy Europe (, UBE; formerly known as University of Dijon) is a public university located in Dijon, France. The University of Burgundy Europe is situated on a large campus (more than 150 ha) in the eastern part of Dijon called Campus Montmuzard, about 15 minutes by tram from the city centre. The humanities and sciences are well represented on the main campus, along with law, medicine, and literature in separate buildings. The IUT (Institute of technology) is also on the campus, providing specialist higher level diplomas in business, biology, communications and computer science. The university counts 10 faculties, 4 engineering schools, 3 institutes of technology offering undergraduate courses, and 2 professional institutes providing post-graduate programmes. With numerous student societies and good support services for international and disabled students, the campus is a welcoming place with numerous CROUS restaurants and canteens providing subsidised fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Université De Franche-Comté
The Marie and Louis Pasteur University (UMLP), formerly known as University of Franche-Comté, is a pluridisciplinary public French university located in Besançon, Franche-Comté, with decentralized campuses in Belfort, Montbéliard, Vesoul and Lons-le-Saunier. With 28 research labs, 667 PhD students and 788 research professors in 2016–2017, the University of Franche-Comté is well represented in the research community. It collaborates with many organizations ( University Hospital of Besançon, CNRS, INSERM, CEA, etc.). It has about 29,000 students, including nearly a third of scholarship students and 12% of foreign students. Its Centre for Applied Linguistics (CLA) is one of the world's leading schools for teaching French as a foreign language and French linguistics. History The university was founded in 1423 in Dole, at that time in the Duchy of Burgundy. It was moved to Besançon in 1691 as Dole was being punished for having resisted too long against the king of Fran ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
World War I
World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting took place mainly in European theatre of World War I, Europe and the Middle Eastern theatre of World War I, Middle East, as well as in parts of African theatre of World War I, Africa and the Asian and Pacific theatre of World War I, Asia-Pacific, and in Europe was characterised by trench warfare; the widespread use of Artillery of World War I, artillery, machine guns, and Chemical weapons in World War I, chemical weapons (gas); and the introductions of Tanks in World War I, tanks and Aviation in World War I, aircraft. World War I was one of the List of wars by death toll, deadliest conflicts in history, resulting in an estimated World War I casualties, 10 million military dead and more than 20 million wounded, plus some 10 million civilian de ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
