Question: Verify that er(Tt) N(d2) satisfies the Black-Scholes equation.

Verify that e−r(T−t) N(d2) satisfies the Black-Scholes equation.

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Let V S t e r T t N d 2 we must show V solves the PDE V t r SV S S 2 2 V SS 2 rV Note that dep... View full answer

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