Jamal Awil

← An Engine, Not a Camera

Bachelier's model was an "arithmetic" Brownian motion: it had the symmetry of the Gaussian. [fact]

Bachelier's model was an "arithmetic" Brownian motion: it had the symmetry of the Gaussian or normal distribution. If the price of a bond was, for example, 100 francs, the probability on Bachelier's model of a one-franc upward movement was the same as that of a one-franc downward movement. Given the pervasiveness of the normal distribution, employing such a model was a natural step for someone with a background in mathematics or physics.

Donald MacKenzie, An Engine, Not a Camera, loc. 285