By Lishang Jiang
From the original standpoint of partial differential equations (PDE), this self-contained ebook provides a scientific, complicated advent to the Black–Scholes–Merton’s alternative pricing concept. A unified method is used to version quite a few kinds of alternative pricing as PDE difficulties, to derive pricing formulation as their ideas, and to layout effective algorithms from the numerical calculation of PDEs. specifically, the qualitative and quantitative research of yankee alternative pricing is handled in accordance with unfastened boundary difficulties, and the implied volatility as an inverse challenge is solved within the optimum regulate framework of parabolic equations.
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