• 제목/요약/키워드: Parametic interest

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ON THE PARAMETIC INTEREST OF THE BLACK-SCHOLES EQUATION

  • Kananthai, Amnuay
    • Journal of applied mathematics & informatics
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    • 제28권3_4호
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    • pp.923-929
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    • 2010
  • We have discovered some parametics $\lambda$ in the Black-Scholes equation which depend on the interest rate $\gamma$ and the Volatility $\sigma$ and later is named the parametic interest. On studying the parametic interest $\lambda$, we found that such $\lambda$ gives the sufficient condition for the existence of solutions of the Black-Scholes equation which is either weak or strong solutions.