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Vinzenz Bronzin
Vinzenz Bronzin (born 1872 in Rovigno – died 1970 in Trieste) was an Italian mathematics professor, known today for an early (rediscovered) option pricing formula, similar to, and predating, the Black–Scholes 1973 formula; he also provided a formulation of put–call parity, written up formally only in 1969 by Stoll. Bronzin was born in Rovigno (now Rovinj), Istria. He studied engineering at the Vienna Polytechnic Institute, and then mathematics and pedagogics at the University of Vienna. He was made a professor at the Accademia di Commercio e Nautica, Trieste, Italy, in 1900; his focus was "Political and Commercial Arithmetic", which included actuarial science and probability theory. In 1910 he accepted the position of director. In 1937 he resigned from all of his positions at the Academia at the age of 65. In 1908 Bronzin published hi''Theorie der Prämiengeschäfte''( German: "Theory of Premium Contracts") discussing a then current type of option contract. A ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Valuation Of Options
In finance, a price (premium) is paid or received for purchasing or selling options. The calculation of this premium will require sophisticated mathematics. Premium components This price can be split into two components: intrinsic value, and time value (also called "extrinsic value"). Intrinsic value The ''intrinsic value'' is the difference between the underlying spot price and the strike price, to the extent that this is in favor of the option holder. For a call option, the option is in-the-money if the underlying spot price is higher than the strike price; then the intrinsic value is the underlying price minus the strike price. For a put option, the option is in-the-money if the ''strike'' price is higher than the underlying spot price; then the intrinsic value is the strike price minus the underlying spot price. Otherwise the intrinsic value is zero. For example, when a DJI call (bullish/long) option is 18,000 and the underlying DJI Index is priced at $18,050 then the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Actuarial Science
Actuarial science is the discipline that applies mathematics, mathematical and statistics, statistical methods to Risk assessment, assess risk in insurance, pension, finance, investment and other industries and professions. Actuary, Actuaries are professionals trained in this discipline. In many countries, actuaries must demonstrate their competence by passing a series of rigorous professional examinations focused in fields such as probability and predictive analysis. Actuarial science includes a number of interrelated subjects, including mathematics, probability theory, statistics, finance, economics, financial accounting and computer science. Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes since the 1980s due to the proliferation of high speed computers and the union of stochastic actuarial models with modern financial theory. Many universities have undergraduate and gradu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1970 Deaths
Events January * January 1 – Unix time epoch reached at 00:00:00 UTC. * January 5 – The 7.1 1970 Tonghai earthquake, Tonghai earthquake shakes Tonghai County, Yunnan province, China, with a maximum Mercalli intensity scale, Mercalli intensity of X (''Extreme''). Between 10,000 and 14,621 are killed and 30,000 injured. * January 15 – After a 32-month fight for independence from Nigeria, Biafran forces under Philip Effiong formally surrender to General Yakubu Gowon, ending the Nigerian Civil War. February * February 1 – The Benavídez rail disaster near Buenos Aires, Argentina (a rear-end collision) kills 236. * February 10 – An avalanche at Val-d'Isère, France, kills 41 tourists. * February 11 – ''Ohsumi (satellite), Ohsumi'', Japan's first satellite, is launched on a Lambda-4 rocket. * February 22 – Guyana becomes a Republic within the Commonwealth of Nations. * February – Multi-business Conglomerate (company), conglomerate Virgin Group is founded as a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1872 Births
Events January * January 12 – Yohannes IV is crowned Emperor of Ethiopian Empire, Ethiopia in Axum, the first ruler crowned in that city in over 500 years. *January 20 – The Cavite mutiny was an uprising of Filipino military personnel of Fort San Felipe (Cavite), Fort San Felipe, the Spanish arsenal in Cavite, Philippine Islands.Foreman, J., 1906, The set course for her patrol area off the northeastern coast of the main Japanese island Honshū. She arrived, New York: Charles Scribner's Sons February * February 2 – The government of the United Kingdom buys a number of forts on the Gold Coast (region), Gold Coast, from the Netherlands. * February 4 – A great solar flare, and associated geomagnetic storm, makes northern lights visible as far south as Cuba. * February 13 – Rex parade, Rex, the most famous parade on Mardi Gras, parades for the first time in New Orleans for Grand Duke Alexei Alexandrovich of Russia. * February 17 – Filipino peo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
19th-century Italian Mathematicians
The 19th century began on 1 January 1801 (represented by the Roman numerals MDCCCI), and ended on 31 December 1900 (MCM). It was the 9th century of the 2nd millennium. It was characterized by vast social upheaval. Slavery was abolished in much of Europe and the Americas. The First Industrial Revolution, though it began in the late 18th century, expanded beyond its British homeland for the first time during the 19th century, particularly remaking the economies and societies of the Low Countries, France, the Rhineland, Northern Italy, and the Northeastern United States. A few decades later, the Second Industrial Revolution led to ever more massive urbanization and much higher levels of productivity, profit, and prosperity, a pattern that continued into the 20th century. The Catholic Church, in response to the growing influence and power of modernism, secularism and materialism, formed the First Vatican Council in the late 19th century to deal with such problems and confirm ce ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jules Regnault
Jules Augustin Frédéric Regnault (; 1 February 1834, Béthencourt – 9 December 1894, Paris) was a French stock broker's assistant who first suggested a modern theory of stock price changes i''Calcul des Chances et Philosophie de la Bourse''(1863), using a random walk model. A key conclusion appears on Page 50: "''l'écart des cours est en raison directe de la racine carrée des temps''", in English: "the deviation of prices is directly proportional to the square root of time". He is also one of the first authors who tried to create a "stock exchange science" based on statistical and probabilistic analysis. His hypotheses were used by Louis Bachelier. Biography During the first years of his life, Jules Regnault lived in the département du Nord (France) where his father worked. When his father died on 16 January 1846 in Paris, his family moved to Brussels, where Odilon, Jules’ brother, became a writer and a student at the Université libre de Bruxelles in advanced mat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stochastic Calculus
Stochastic calculus is a branch of mathematics that operates on stochastic processes. It allows a consistent theory of integration to be defined for integrals of stochastic processes with respect to stochastic processes. This field was created and started by the Japanese people, Japanese mathematician Kiyosi Itô during World War II. The best-known stochastic process to which stochastic calculus is applied is the Wiener process (named in honor of Norbert Wiener), which is used for modeling Brownian motion as described by Louis Bachelier in 1900 and by Albert Einstein in 1905 and other physical diffusion processes in space of particles subject to random forces. Since the 1970s, the Wiener process has been widely applied in financial mathematics and economics to model the evolution in time of stock prices and bond interest rates. The main flavours of stochastic calculus are the Itô calculus and its variational relative the Malliavin calculus. For technical reasons the Itô integ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Louis 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] |
Valuation Of Options
In finance, a price (premium) is paid or received for purchasing or selling options. The calculation of this premium will require sophisticated mathematics. Premium components This price can be split into two components: intrinsic value, and time value (also called "extrinsic value"). Intrinsic value The ''intrinsic value'' is the difference between the underlying spot price and the strike price, to the extent that this is in favor of the option holder. For a call option, the option is in-the-money if the underlying spot price is higher than the strike price; then the intrinsic value is the underlying price minus the strike price. For a put option, the option is in-the-money if the ''strike'' price is higher than the underlying spot price; then the intrinsic value is the strike price minus the underlying spot price. Otherwise the intrinsic value is zero. For example, when a DJI call (bullish/long) option is 18,000 and the underlying DJI Index is priced at $18,050 then the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Option (finance)
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 financia ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
German Language
German (, ) is a West Germanic language in the Indo-European language family, mainly spoken in Western Europe, Western and Central Europe. It is the majority and Official language, official (or co-official) language in Germany, Austria, Switzerland, and Liechtenstein. It is also an official language of Luxembourg, German-speaking Community of Belgium, Belgium and the Italian autonomous province of South Tyrol, as well as a recognized national language in Namibia. There are also notable German-speaking communities in other parts of Europe, including: Poland (Upper Silesia), the Czech Republic (North Bohemia), Denmark (South Jutland County, North Schleswig), Slovakia (Krahule), Germans of Romania, Romania, Hungary (Sopron), and France (European Collectivity of Alsace, Alsace). Overseas, sizeable communities of German-speakers are found in the Americas. German is one of the global language system, major languages of the world, with nearly 80 million native speakers and over 130 mi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
