Check out these pretty Sine Curves (1 Viewer)

OP
Bjerknes

Bjerknes

"Top Economist"
Mar 16, 2004
116,161
  • Thread Starter
  • Thread Starter #166
    Have you guys seen that function that when you do the graph in polar coordinates it comes out as a heart? Thats the coolest one ever
    The cardiod is very pretty. Nothing like polar coordinates to get your day going. :tup:


    Man, I watched a Tv show about those kind of things and water dams in Switzerland, they had to calculate what amount of water they should let go to secure the dam, but also maximise their profit when selling the energy they would produce.
    So raining forecasts were pretty important in their analysis between safety and profit.

    Fascinating stuff.
    That is the essence of risk management. Hedging against potentially damaging adverse business exposures while maximizing profit. And what is even more interesting is that new financial products (derivatives) continue to arise on the markets for all sorts of different business operations.

    In the case of the Swiss damn, perhaps in the future there will be a weather derivative traded on the market to hedge against any unexpected fluctuations of total rainfall in their area. So what the Swiss firm could do is purchase that derivative on the market at the traded price, and if they experiance a greater rainfall than expected (thus loss of revenue), the firm that they purchased the weather derivative from would have to pay the Swiss company some premium stipulated by the contract.

    It's all about probability and essentially betting.
     

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