On the Parametric Interest of the Option Price of Stock from Black-Scholes Equation

Amnuay Kananthai, Somsak Chanaim, Chongkolnee Rungruang

Abstract

In this paper, we studied the option price of stock from the Black-Scholes equation and discovered some parameter $\lambda$ which is the generalizztion of the interest $r$. Such $\lambda$ is the first that named the parametric interest which is new the results. Morever we found that such $\lambda$ gives the conditions for the solution of the Black-Scholes equation which may be weak or strong solution.