A Study on the Impact of Nonlinear Source Term in Black-Scholes Option Pricing Model

In this work, we study the effect of nonlinear source term in Black-Scholes model by finding the solution of it. We use the mathematical concepts of existence and uniqueness to arrive the conclusion. The transformation of the nonlinear equation into heat equation leads to the existence of solution t...

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Main Authors: P. Sozhaeswari, R. Sowrirajan, K. Loganathan, Sonam Gyeltshen
Format: Article
Language:English
Published: Wiley 2022-01-01
Series:Abstract and Applied Analysis
Online Access:http://dx.doi.org/10.1155/2022/6385401
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author P. Sozhaeswari
R. Sowrirajan
K. Loganathan
Sonam Gyeltshen
author_facet P. Sozhaeswari
R. Sowrirajan
K. Loganathan
Sonam Gyeltshen
author_sort P. Sozhaeswari
collection DOAJ
description In this work, we study the effect of nonlinear source term in Black-Scholes model by finding the solution of it. We use the mathematical concepts of existence and uniqueness to arrive the conclusion. The transformation of the nonlinear equation into heat equation leads to the existence of solution through fixed-point theorems, semigroup theory, and certain regularity conditions imposed on variables.
format Article
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institution OA Journals
issn 1687-0409
language English
publishDate 2022-01-01
publisher Wiley
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series Abstract and Applied Analysis
spelling doaj-art-fa0fdc779daa45dd9bd563d558dee64b2025-08-20T02:22:43ZengWileyAbstract and Applied Analysis1687-04092022-01-01202210.1155/2022/6385401A Study on the Impact of Nonlinear Source Term in Black-Scholes Option Pricing ModelP. Sozhaeswari0R. Sowrirajan1K. Loganathan2Sonam Gyeltshen3Department of MathematicsDepartment of MathematicsDepartment of Mathematics and StatisticsDepartment of Humanities and ManagementIn this work, we study the effect of nonlinear source term in Black-Scholes model by finding the solution of it. We use the mathematical concepts of existence and uniqueness to arrive the conclusion. The transformation of the nonlinear equation into heat equation leads to the existence of solution through fixed-point theorems, semigroup theory, and certain regularity conditions imposed on variables.http://dx.doi.org/10.1155/2022/6385401
spellingShingle P. Sozhaeswari
R. Sowrirajan
K. Loganathan
Sonam Gyeltshen
A Study on the Impact of Nonlinear Source Term in Black-Scholes Option Pricing Model
Abstract and Applied Analysis
title A Study on the Impact of Nonlinear Source Term in Black-Scholes Option Pricing Model
title_full A Study on the Impact of Nonlinear Source Term in Black-Scholes Option Pricing Model
title_fullStr A Study on the Impact of Nonlinear Source Term in Black-Scholes Option Pricing Model
title_full_unstemmed A Study on the Impact of Nonlinear Source Term in Black-Scholes Option Pricing Model
title_short A Study on the Impact of Nonlinear Source Term in Black-Scholes Option Pricing Model
title_sort study on the impact of nonlinear source term in black scholes option pricing model
url http://dx.doi.org/10.1155/2022/6385401
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