Introduction to option pricing theory kallianpur gopinath karandikar rajeeva l 9781461267966 books amazonca. Introduction to option pricing theory kallianpur gopinath karandikar rajeeva l 9780817641085 books amazonca. Option pricing theory estimates a value of an options contract by assigning a price known as a premium based on the calculated probability that the contract will finish in the money itm at. The development of options pricing theory is intimately related to notions associated with stochastic processes the first important work on options pricing louis bacheliers 1900 doctoral dissertation also represents a significant early contribution to the theory of brownian motion