Explain Black–Scholes model
Explain Black–Scholes model.
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The Black-Scholes model is depends on geometric Brownian motion for asset price S as
dS = µSdt + σSdX.
The Black-Scholes partial differential equation for value V of an alternative is then
∂V/∂t + ½ σ2S2 (∂2V/∂S2) + rS (∂V/∂S) - rV = 0
What is an Ordinary Differential Equation (ODE)?
Who independently developed a model for simply pricing risky assets?
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Explain lognormal stochastic differential equation for evolution of an asset.
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Hi, I was wondering if there is anyone who can perform numerical analysis and write a code when required. Thanks
Explain Nonlinear integer programming problem with an example ?
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