Of how a botanist and two geniuses unknowingly laid the foundations of Mathematical Finance

In this episode, we trace the emergence of Brownian motion from its historical origins to its mathematical structure.

We begin with a brief historical account, examining Robert Brown’s botanical observations and Einstein’s theoretical explanation of molecular motion. We then introduce the concept of stochastic processes and develop the definition and fundamental properties of Brownian motion as the cornerstone of modern continuous-time stochastic modelling.

What began as a scientific curiosity would eventually become one of the central mathematical instruments of Quantitative Finance.

This episode is currently in preparation and will be released shortly.