# Brownian Motion

Submitted by Abe F. in Finance
June 16, 2016
A stochastic process in which the random variable moves continuously and follows a random walk with normally distributed independent increments. Named after the Scottish botanist Robert Brown, who in 1827 noticed that pollen grains suspended in water exhibited continual movement. Brownian motion is also called a Wiener process. This is a basic concept used to derive the continuous type of option pricing model.