Black-Scholes equation
= Black-Scholes equation
{c}
{wiki=Black–Scholes_equation}
The price $V(t,s)$ of a sufficiently regular European claim satisfies
$$
\partial_tV+rs\partial_sV+\frac12\sigma^2s^2\partial_{ss}V-rV=0.
$$
= Black-Scholes equation
{c}
{wiki=Black–Scholes_equation}
The price $V(t,s)$ of a sufficiently regular European claim satisfies
$$
\partial_tV+rs\partial_sV+\frac12\sigma^2s^2\partial_{ss}V-rV=0.
$$