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To: Jurgen who wrote (36351)	2/24/1998 10:20:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 61433

Final after-market trading, Tue., 2/24/98: ASND - Transaction Log 5:22:13 S A 35.6 4:10:06 S 1000 35:E T 5:22:13 S B 35:E 4:06:48 S 1000 35.5 T 5:22:13 S T 35:E 4:06:22 S 600 35.5 T 5:22:13 S L 35:9 4:04:37 S 300 35:E T 5:22:13 S H 36.4 4:04:30 S 400 35:E T 5:22:13 S V 47216 4:04:21 S 1000 35.5 T 5:20:14 S V 47216 4:03:29 S 700 35:E T 4:59:59 S 200 35.6 T 4:03:02 S 1000 35:9 T 4:22:54 S T 35:E 4:02:54 S 11000 35.6 T 4:22:54 S V 47214 4:02:36 S 700 35:E T 4:21:59 S 1000 35.6 T 4:02:35 S 500 35:E T 4:18:31 S T 35:E 4:02:31 S 200 35.6 T 4:18:31 S V 47204 4:02:30 S 1000 35:E T 4:18:17 S 1000 35:E T 4:02:18 S 1000 35:E T 4:15:15 S T 35:E 4:02:17 S 2000 35:E T 4:15:15 S V 47294 4:02:17 S 1000 35:E T 4:14:26 S 500 35:E T 4:02:11 S 300 35:E T 4:14:09 S 10000 35.7 T cancel 4:01:40 S 12900 35:E T 4:10:44 S 1000 35:E T 4:01:27 S 1400 35.5 T 4:10:24 S 300 35:E T 4:01:19 S 5900 35:E 4:10:06 S 100 35:E T 4:01:15 S 100 35.6

To: Jurgen who wrote (36351)	2/24/1998 11:17:00 PM
From: michael modeme	Respond to of 61433

Jurgen, Yes, the results from these models are very significant. For example, under the Black and Schole model for option pricing they assume that the stock price is a certain stochastic process: an exponential martingale. And under that assumption they were able to derive their famous result: that the fair option price is not dependent on the general trend of the stock, just the volatility in the stock price. In addition, these models can tell you when it's an appropriate time to buy/sell, what your expected return is over a certain time period for a given portfolio, what your risk is for a portfolio, etc. People have been using this mathematical machinery in statistical physics, evolutionary biology, geophysics, and theoretical chemistry for many decades. Now there is a big push to adapt this stuff to study finance. I have written serveral computer programs to analyze these processes (useful when the math gets too hard). If you're interested, the bible for the application of probability theory is a two- volume book by Feller "An introduction to probability theory and its applications". So, yes, extremely useful stuff!