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Deriving the Black - Schole Equation

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The BSM equation for a derivative F on a stock paying no dividends is:

-See attachment

If you were to transform this PDE with the substitution S = Ke^x, where x is a variable and K a constant, what would be the resulting equation?

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https://brainmass.com/math/numerical-analysis/deriving-black-schole-equation-472784

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Solution Summary

In this solution, the black and schole equation is derived from the heat equation.

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