Slaèálek, Jiøí - In: Czech Journal of Economics and Finance (Finance a uver) 50 (2000) 2, pp. 78-98
This paper deals with the most widespread model of options pricing, the Black-Scholes model. The model is derived in the usual way, by means of Ito?s lemma. The Black-Scholes partial differential equation is obtained under the assumption of geometric Brownian motion of the underlying stock....