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The wave-equivalent of the Black–Scholes option price: an interpretation

Authors :
Haven, Emmanuel
Source :
Physica A. Dec2004, Vol. 344 Issue 1/2, p142-145. 4p.
Publication Year :
2004

Abstract

Abstract: We propose an interpretation of the wave-equivalent of the Black–Scholes option price. We consider Nelson''s version of the Brownian motion (Dynamical Theories of Brownian Motion, Princeton University Press, Princeton, NJ, 1967) and we use this specific motion as an input to produce a Black–Scholes PDE with a risk premium. [Copyright &y& Elsevier]

Details

Language :
English
ISSN :
03784371
Volume :
344
Issue :
1/2
Database :
Academic Search Index
Journal :
Physica A
Publication Type :
Academic Journal
Accession number :
19291372
Full Text :
https://doi.org/10.1016/j.physa.2004.06.105