Jon Nguyen

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described stock prices using a distribution of probabilities with the esoteric name lognormal. This did a good job of fitting historical price changes that ranged from small to rather large, but greatly underestimated the likelihood of very large changes. Financial models like the Black-Scholes formula for option prices were built using the lognormal.
A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market
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