This paper will explore the solution of the Black-Scholes Equation which is used in mathematical finance. It will derive the solution to the Black-Scholes equation, using the solution of the Heat Equation. This solution can then be used to find the fair price of a European call option. It also includes examples using current stocks.
Black-Scholes Equation, Black-Scholes solution, Mathematical finance
Year of Completion
Mathematics and Physics
Law, Elizabeth, "Finding the Solution to the Black-Scholes Equation" (2019). Undergraduate Honors College Theses 2016-. 74.