In his talk Derivatives - the View from the Trenches, Jesper Andreasen said the following on the first fundamental theorem of derivatives trading (see his slides):
"Most of this sort of hocus-pocus was derived by Bruno Dupire in the early 90s, but has received far too little recognition and attention in textbooks and academic circles."
Here is a list of the articles he recommended for further reading. Note that an early version of the central Risk magazine article is available in full text.