3 ms·
Black-Scholes uses the heat equation, is that what you’re thinking of?
by xxxtentachyon 4y ago
Black-Scholes uses the heat equation, is that what you’re thinking of?
- xhkkffbf 4y agoNo. It was another bit of social science. I have other problems with Black-Scholes, but they're not as strong. One friend told me that for all of the problems, it offered a relatively neutral way to arb between different strike prices of the same security.