Black-Scholes Equation
Black-Scholes Equation
![Black-Scholes Equation](/model-images/black-scholes1.jpg)
This is an example showing how to define a custom parital differential equation (PDE) equation model in the FEATool Multiphysics. In this case the Black-Scholes model equation, which is used in financial analytics to model derivatives and options pricing. The non-linear partial differential equation to be solved reads …