Hermite

Today I have reaserched about a method to calculate market risks. It is called the distribution measuring method, actually I don't know what this is called in English.

This method uses some difficult formulae to calculate the value of risks, and one of them is the Hermite function. This function is really interesting because even the formula includes a multiple difference of exponential function, once you decide one parameter which is the time for differencing, the function becomes quite simple one consists of multiple times x, the principle parameter of this function, and constant. If you define the times for differencing as zero, this function becomes 1, a constant.

There are many interesting formulae, someone say it as "beautiful". They seems to be very complexed, actually the idea or what the formula expresses is absolutely difficult, but once you put particular parameter to the function, it becomes quite simple answer. The most beautiful one is exponential function, I think. If you put pi times i, which is the unit for complex number, to the parameter of exponential function, the answer becomes -1. It is really interesting. I think it is one of the reason why many people are absorbed to mathmatics, the real mathmatics.