Konstruksi Persamaan Black-Scholes Dengan Konsep Model Penentuan Harga Aset …

We discuss the construction of Black-Scholes equation by using the concept of capital asset pricing model. This equation is used for finding option price. We show the solving of Black-Scholes equation is done by converting this equation to the heat equation with boundary-value condition and initial-value condition. So the solution of Black-Scholes equation for European option price is forme…