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 2Parabolic partial differential equationRelated: Its diffusion term represents uncertainty in the modeled asset price.Itô's lemmaRelated: Itô's lemma helps derive the equation by tracking an option price as its underlying asset moves.Crank–Nicolson methodRelated: Finite-difference option-pricing solvers commonly apply the method to this equation.