Here I present: Ian Stewart, “In Pursuit of the Unknown: 17 Equations that Changed the World”, 2012, PART SIX (6).
INTRODUCTION.
“A picture is worth a thousand words; but a formula is worth a thousand pictures”.
Convection-diffusion equations are ubiquitous in applied mathematics. The Black-Scholes equation is an example of a “convection-diffusion” equation. The listed 17 equations of Ian Stewart includes the Black-Scholes equation. Financial mathematics is the area of application of the Black-Scholes equation. However, as a convection-diffusion equation it is widely used in chemistry and physics.
John Calvin Giddings (1930-1996) was a Professor of Chemistry at the University of Utah. Professor Giddings development of “field flow fractionation” got him two (2) nominations for the Chemistry Nobel Prize. “Field flow fractionation” is the physical realization of a “convection-diffusion” equation. All of the equations that Ian Stewart listed are used in the Science fields. At first blush the inclusion of the Black-Scholes equation appears not to qualify for the list of 17 equations.
“A picture is worth a thousand words; but a formula is worth a thousand pictures”. Everyone needs to consider the formula listed by Ian Stewart in all fields of study.
