A Comparative Study of Black-Scholes Equation

Refet Polat

Abstract


In this paper, we analyzed Options and Black Scholes Models for the valuing and pricing of commodities. In particular, we examined the numerical solution techniques of American Option Problems. For the comparison of the results pertaining to different methods, we used classical methods utilizing chronological order. Then we compared the results of these methods and tried to determine the most efficient method.

Keywords


Options; American; Options; Black-Scholes Equation; Finite-difference Method.

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