How Are Line Integrals Used in Finance and Economics?

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Discussion Overview

The discussion explores the applications of line integrals beyond physics, specifically in the fields of finance and economics. Participants inquire about the relevance and utility of line integrals in these areas.

Discussion Character

  • Exploratory, Technical explanation

Main Points Raised

  • One participant asks about the applications of line integrals in finance or economics, beyond their use in physics.
  • Another participant mentions that stochastic integrals are similar to line integrals and notes their application in economics.
  • A different participant highlights that line integrals, along with Green's theorem, can be used to determine the area of shapes bounded by closed curves.
  • A later reply reiterates the point about stochastic integrals being close to line integrals and their relevance in economics.

Areas of Agreement / Disagreement

No consensus is reached regarding specific applications of line integrals in finance and economics, and multiple viewpoints are presented without resolution.

Contextual Notes

Participants do not provide detailed examples or clarify the specific contexts in which line integrals are applied in finance or economics, leaving some assumptions and definitions unspecified.

woundedtiger4
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other than the physics (work) what are the applications of line integral? particularly does it have any use in finance or economics?
 
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Stochastic integrals are quite close to line integrals. They are used, e.g., in economics.
 
by line integrals and green's thm, you can find the area of any shape bounded by a closed curve. It's pretty cool actually.
 
camillio said:
Stochastic integrals are quite close to line integrals. They are used, e.g., in economics.

thanks
 

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