8) Formulating the mathematical problem Flashcards
(5 cards)
1
Q
What boundary conditions are required to solve the Black-Scholes equation
A
2
Q
What are the boundary and terminal conditions for a European call option in the Black-Scholes model
A
3
Q
What are the boundary and terminal conditions for a European put option in the Black-Scholes model
A
4
Q
What is a cash-or-nothing option and what is its terminal condition
A
5
Q
What are the boundary and terminal conditions for a cash-or-nothing call option
A
