Black–Scholes equation
id:
black-scholes-equation-207-14945063
title:
Black–Scholes equation
text:
In mathematical finance, the Black–Scholes equation, also called the Black–Scholes–Merton equation, is a partial differential equation (PDE) governing the price evolution of derivatives under the Black–Scholes model. Broadly speaking, the term may refer to a similar PDE that can be derived for a variety of options, or more generally, derivatives. Consider a stock paying no dividends. Now construct any derivative that has a fixed maturation time T in the future, and at maturation, it has payoff K
brand slug:
wiki
category slug:
encyclopedia
description:
Partial differential equation in mathematical finance
original url:
https://en.wikipedia.org/wiki/Black%E2%80%93Scholes_equation
date created:
2008-05-28T17:17:20Z
date modified:
2024-09-11T05:41:46Z
main entity:
{"identifier":"Q17005676","url":"https://www.wikidata.org/entity/Q17005676"}
image:
{"content_url":"https://upload.wikimedia.org/wikipedia/commons/d/dc/Black-Scholes_surface_plot_with_random_paths.svg","width":900,"height":900}
fields total:
13
integrity:
16