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The Black–Scholes Equation

  • Donald G. Saari
Chapter
  • 1.5k Downloads
Part of the Undergraduate Texts in Mathematics book series (UTM)

Abstract

We now are ready to derive the important Black–Scholes Equation [1], which is widely used to determine pricing of Calls and Puts! An outline is given next; details are developed in the next chapter.

References

  1. 1.
    Black, F., and M. Scholes. 1973. The Pricing of Options and Corporate Liabilities. Journal of Political Economy 81: 637–654.MathSciNetCrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Donald G. Saari
    • 1
  1. 1.Departments of Economics and MathematicsUniversity of CaliforniaIrvineUSA

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