Van Rensburg, W.C.J.2016-06-302018-01-222016-06-302018-01-222006-05http://hdl.handle.net/2152/38762This thesis uses the Geometric Brownian motion (GBM) to model oil daily spot prices. The history of the evolution of Brownian motion from discovery as a physical phenomenon to the development of a mathematic model and to the application in the finance world was studied. The study helps understanding of the analogy between molecular movement and the price change and helps the application of GBM to model the oil price. The historical WTI daily spot price was adjusted and used to estimate the parameters in the GBM model. Two computer programs were developed to facilitate the application of GBM model to daily spot oil prices.electronicenCopyright © is held by the author. Presentation of this material on the Libraries' web site by University Libraries, The University of Texas at Austin was made possible under a limited license grant from the author who has retained all copyrights in the works.Geometric Brownian motion (GBM)Oil pricesDaily spot pricesThesisRestricted