My question/topic of discussion is, "Economic Speculation and Hedging". For many people this is just a mysterious thing that big bad Wall Street bankers do, and I want to find out about it.(adsbygoogle = window.adsbygoogle || []).push({});

How does the calculus and the other maths apply to speculation and hedging? I understand that math is required in order to speculate and hedge, but I do not understand how it is applied. How do you determine whether or not a stock is a good bet or not? On the other hand, how do you determine if you should hedge a bet? Can you give an example of the process used.

I understand that most people here are mathematicians and physicists, but I'm fairly confident in my assumption that at least a few people know how the math is applied

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# Economic Speculation

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