The Gold and Stochastic Process Relation
Though Mr. Noviandri somehow has once proposed an idea to the naive Freshman Students of ITB’s 2007 class to try to create gold in his quantum chemistry session, still we can not deny to not be able to afford it, yet at least find the least budget-consuming method(s) to do it for the time being. Gold remains one of the most highly-recommended noble metal to be investments, especially due to its stability in the market(Check this, this, and this out to find more ways of investing your asset in gold).
Speaking about investing and economical act, I remember one of special cases in the field of stochastic process study occuring in the European stock market I previously dealt with. It was really interesting, and the conclusion withdrawn was that the price of the option we’ll have to take will (ideally) depend on the stock price and time interval involved. The statement is summarized in the Nobel-winner Black-Scholes Equation resulting in exponential factor as the solution.
Later on we found out that the exponential factor coherently correlated with the dynamics of the system. Further conclusion included that in non linear system, even if the equation is just slightly changed, the final outcome can differ extremely.(Further discussion on this, please do not hesitate to contact me via comment on this post).
