S. E. Fadugba

Alternative Approach for the Derivation of Black-Scholes Partial Differential Equation in the Theory of Options Pricing Using Risk Neutral Binomial Process

S. E. Fadugba, J. T. Okunlola & E. I. Adeyemi · Journal of Scientific Research and Reports · 2014

This paper presents a risk neutral binomial process as an alternative approach for the derivation of analytic pricing equation called “Black-Scholes Partial differential Equation” in the theory of option pricing. Binomial option pricing is a powerful technique that can be used to...