The second law of thermodynamics says that the amount of disorder in a thermodynamic system always increases. It places limits on how much say that useful work can be extracted from heat. The second law of thermodynamics led us to better steam engines, estimates of the efficiency of renewable energy, the ‘heat death of the universe’ scenario, proof that matter is made of atoms, and paradoxical connections with the arrow of time.
Black-Scholes Equation
Black-Scholes equation says how the price of financial derivative changes over time, based on the principle that when the price is correct.