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An Introduction to the Black-Scholes PDE
A basic transformation will turn the Black-Scholes equation into a classical PDE! Ryan Walker An Introduction to the Black-Scholes PDE Basic Assumptions: 1 Frictionless and efficient market for derivatives. 2 Trading in assets is a continuous process. 3 Every underlying instrument has a unique, known price.
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MA214 Fall 2008 Practice Test #2 - University of …
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