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Now they believe that successful implants, especially fetal implants, may grow and become integrated into the circuitry of the brain, replacing destroyed tissue The first adrenal implants, performed in Sweden in 1982, were unsatisfactory The first fetal implants were performed in China in 1987, but not much is known about them In September of 1987, a Mexican team modified the Swedish procedure and reported hopeful results with two fetal implants: one that implanted fetal brain tissue into the brain of a fifty-year-old man and one that implanted fetal adrenal tissue into the brain of a thirty-five-year-old woman Over time, the results from the fetal implant in the man were said to be better than the results from the adrenal implant in the woman The Mexican team followed up with implants on 40 more patients and reported marked improvement in 18 of them.



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Of the remaining 22, they reported that some people showed less than marked improvement, and some showed no improvement at all They reported that 13 of the 40 maintained their improvement for at least a year Four patients died Scientists elsewhere who tried to duplicate the Mexican results were not able to do so In the United States, scientists undertook a multicenter study of brain implants in advanced Parkinson s patients, using fragments of the patients own adrenal glands They did not duplicate.

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This is perhaps the most important justification for teaching complex analysis to engineers, and it also provides for nice applications of conformal mapping. SECTION 18.1. Electrostatic Fields, page 750 Purpose. To show how complex analysis can be used to discuss and solve two-dimensional electrostatic problems and to demonstrate the usefulness of complex potential, a major concept in this chapter. Main Content, Important Concepts Equipotential lines Complex potential (2) Combination of potentials by superposition The main reason for using complex methods in two-dimensional potential problems is the possibility of using the complex potential, whose real and imaginary parts both have a physical meaning, as explained in the text. This fact should be emphasized in teaching from this chapter. SOLUTIONS TO PROBLEM SET 18.1, page 753 2. 4. 0.4x 6.0 kV, F 0.4z 6.0 is expected to be linear because of the boundary (two parallel straight lines). From the boundary conditions and by inspection, (x, y) 100(y x)/k.

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to the fact that Black-Scholes comes with a built-in self-correcting mechanism that very conveniently lets traders manipulate the model so as to obtain the results that are deemed optimal from a practical point of view Black-Scholes thus allows traders not to be hostages to the dictates of an unrealistic theoretical construct; it sets them free to express their opinions so as to arrive at a price that is deemed optimal given real-world realities The way those opinions are expressed is, of course, through the volatility parameter, the only manipulable ingredient of the formula The volatility smile is a re ection of those freely expressed opinions and of how Black-Scholes permits users to break free from its own mathematical straitjacket Traders obviously love such freedom.

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Thus, the smile is saying both things at the same time: BlackScholes is wrong, but it is right! The model is mathematically wrong, but it can be easily righted through its built-in self-correction mechanism When the right output can be obtained from the wrong model, then that model becomes the right one to use, after all The message from the smile is very clear: Black-Scholes is a wonderful pricing model because it allows traders to have a voice and guarantees optimal outputs that make sense in real life Rather than create the need for newer, more sophisticated, alternative models, the existence of the smile is in fact a tremendous validation of the real-world usefulness of Black-Scholes Look how easy it is to achieve optimal pricing levels by simple and straightforward manipulation of the model The volatility smile is a testament to the market s acceptance of Black-Scholes.

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