Can someone provide me with details or a reference on how to transform the Black-Scholes PDE with nonconstant coefficients (i.e. $r=r\left(S,t\right)$, $\sigma=\sigma\left(S,t\right)$) to the heat equation? Thank you in advance.
Asked
Active
Viewed 402 times
4
-
1This question was answered on math.stackexchange.com: http://math.stackexchange.com/questions/417979/black-scholes-pde-to-heat-equation-nonconstant-coefficients – Jan 10 '14 at 10:40
-
Is there any error in the answer at https://math.stackexchange.com/questions/417979/black-scholes-pde-to-heat-equation-nonconstant-coefficients? – Cloud Cho Dec 04 '19 at 06:55