4 ms·
Your link is slightly misleading - it shows ways of approximating solutions to the equation. The equation itself is a partial differential equation [1]. dV
by harpocrates 10y ago
Your link is slightly misleading - it shows ways of approximating solutions to the equation. The equation itself is a partial differential equation [1].
dV/dt + 1/2*sigma²*S²*d²V/dS² + r*S*dV/dS - r*V = 0
[1] https://en.wikipedia.org/wiki/Black–Scholes_equation https://en.wikipedia.org/wiki/Black–Scholes_equation