Finite Difference Methods and Jump Processes Arising in the Pricing of Contingent Claims: A Synthesis

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1978
Volume: 13
Issue: 3
Pages: 461-474

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Since the seminal article by Black and Scholes on the pricing of corporate liabilities, the importance in finance of contingent claims has become widely recognized. The key to the valuation of such claims has been found to lie in the solution to certain partial differential equations. The best known of these was derived by Black and Scholes, in their original article, from the assumption that the value of the asset underlying the contingent claim follows a geometric Brownian motion.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:13:y:1978:i:03:p:461-474_00
Journal Field
Finance
Author Count
2
Added to Database
2026-01-24