Question: Could you please help me solve. Let N (d) = VL27r fie e'dz. Using the formula for the solution of the heat equation in (i),

Could you please help me solve.

Let N (d) = VL27r fie e'dz. Using the formula for the solution of the heat equation in (i), express the price of the call Option V in terms of N. The price of an Option obtained this way is called the BlackScholes formula. You will need to complete the square in the exponential and make a substitution

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