Check that the following are solutions of the BlackScholes equation: (a) V(S, t) = S, (b) V(S,

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Check that the following are solutions of the Black–Scholes equation:
(a) V(S, t) = S,
(b) V(S, t) = e^rt.

Why are these solutions of particular note?

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Introduces Quantitative Finance

ISBN: 978-0470319581

2nd edition

Authors: Paul Wilmott

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Question Posted: Sep 23, 2020 05:52 AM

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Check that the following are solutions of the BlackScholes equation: (a) V(S, t) = S, (b) V(S,

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Solutions of the BlackScholes equation define the value of a derivative for ex...View the full answer

Introduces Quantitative Finance

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