The model that was the first true ancestor of modern option-pricing models was developed by:

Question

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Louis Bachelier developed the first true ancestor of modern option-pricing models in his PhD thesis "Théorie de la Spéculation" in 1900. His thesis introduced a stochastic process now known as Brownian motion, which he used to model stock prices and derive an option-pricing formula. This laid the foundation for future work by economists and mathematicians, including Black-Scholes and Merton, in the field of option pricing.

The Model That Was the First True Ancestor of Modern