KnowraBlack–Scholes equationLinked fromLinked fromThe 9 pages that link to Black–Scholes equation, each with the reason it gives.All 9Broader topic 4Related 3Compared with 2Heat equationCompared with: A change of variables transforms this financial pricing equation into a heat equation.Black–Scholes modelBroader topic: It expresses the model’s no-arbitrage pricing condition before boundary conditions specify an option.Diffusion equationCompared with: A change of variables connects its mathematical structure to a diffusion equation.Feynman–Kac formulaBroader topic: Its solution can be expressed as a discounted expectation over risk-neutral asset paths.Parabolic partial differential equationRelated: Its diffusion term represents uncertainty in the modeled asset price.Fischer BlackBroader topic: Black’s hedging argument yields the differential equation behind the model’s pricing formula.Itô's lemmaRelated: Itô's lemma helps derive the equation by tracking an option price as its underlying asset moves.Myron ScholesBroader topic: The equation formalizes the pricing framework associated with Scholes’s work.Crank–Nicolson methodRelated: Finite-difference option-pricing solvers commonly apply the method to this equation.