|
Vinzenz Bronzin
Vinzenz Bronzin (1872 in Rovigno – 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. Almost eve ... [...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. This article discusses the calculation of this premium in general. For further detail, see: for discussion of the mathematics; Financial engineering for the implementation; as well as generally. Premium components This price can be split into two components: intrinsic value, and time 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 (bu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1872 Births
Year 187 ( CLXXXVII) was a common year starting on Sunday (link will display the full calendar) of the Julian calendar. At the time, it was known as the Year of the Consulship of Quintius and Aelianus (or, less frequently, year 940 '' Ab urbe condita''). The denomination 187 for this year has been used since the early medieval period, when the Anno Domini calendar era became the prevalent method in Europe for naming years. Events By place Roman Empire * Septimius Severus marries Julia Domna (age 17), a Syrian princess, at Lugdunum (modern-day Lyon). She is the youngest daughter of high-priest Julius Bassianus – a descendant of the Royal House of Emesa. Her elder sister is Julia Maesa. * Clodius Albinus defeats the Chatti, a highly organized German tribe that controlled the area that includes the Black Forest. By topic Religion * Olympianus succeeds Pertinax as bishop of Byzantium (until 198). Births * Cao Pi, Chinese emperor of the Cao Wei state (d. 226) * G ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
19th-century Italian Mathematicians
The 19th (nineteenth) century began on 1 January 1801 ( MDCCCI), and ended on 31 December 1900 ( MCM). The 19th century was the ninth century of the 2nd millennium. The 19th century 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, expanding beyond its British homeland for the first time during this century, particularly remaking the economies and societies of the Low Countries, 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 Islamic gunpowder empires fell into decline and European imperialism brought much of South Asia, Southeast Asia, and almost all of Africa under colonial rule. It was also marked by the collapse of the large ... [...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 January 16, 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 mathematician Kiyoshi 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 integral is the most ... [...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. Thus, 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. His father was a wine merchant and amateur scientist, and the vice-consul of Venezuela at Le Havre. His mother was the daughter of an impor ... [...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. This article discusses the calculation of this premium in general. For further detail, see: for discussion of the mathematics; Financial engineering for the implementation; as well as generally. Premium components This price can be split into two components: intrinsic value, and time 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 (bu ... [...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 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 instrument at a specified strike ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
German Language
German ( ) is a West Germanic languages, West Germanic language mainly spoken in Central Europe. It is the most widely spoken and Official language, official or co-official language in Germany, Austria, Switzerland, Liechtenstein, and the Italy, Italian province of South Tyrol. It is also a co-official language of Luxembourg and German-speaking Community of Belgium, Belgium, as well as a national language in Namibia. Outside Germany, it is also spoken by German communities in France (Bas-Rhin), Czech Republic (North Bohemia), Poland (Upper Silesia), Slovakia (Bratislava Region), and Hungary (Sopron). German is most similar to other languages within the West Germanic language branch, including Afrikaans, Dutch language, Dutch, English language, English, the Frisian languages, Low German, Luxembourgish, Scots language, Scots, and Yiddish. It also contains close similarities in vocabulary to some languages in the North Germanic languages, North Germanic group, such as Danish lan ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Probability Theory
Probability theory is the branch of mathematics concerned with probability. Although there are several different probability interpretations, probability theory treats the concept in a rigorous mathematical manner by expressing it through a set of axioms. Typically these axioms formalise probability in terms of a probability space, which assigns a measure taking values between 0 and 1, termed the probability measure, to a set of outcomes called the sample space. Any specified subset of the sample space is called an event. Central subjects in probability theory include discrete and continuous random variables, probability distributions, and stochastic processes (which provide mathematical abstractions of non-deterministic or uncertain processes or measured quantities that may either be single occurrences or evolve over time in a random fashion). Although it is not possible to perfectly predict random events, much can be said about their behavior. Two major results in probability ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
.JPG "Click for more on -> Jules Regnault")
.svg "Click for more on -> Probability Theory")