Black-Scholes

One of the sales teams asked this morning about the Black-Scholes algorithm.
"It's just the Heat Transfer Equation applied to options pricing..." and I realized this was another great example of 19th century physics winning a 20th century Nobel Prize in Economics.

As I said, there is a lot of great ideas that transfer over from Physics to Economics.

Update: I should always check Wiki first. They do a version of Heat Transfer which one can simplifiy into Black-Scholes pretty clearly.